Equity Mutual Fund Inflows Jump 21% in November; Industry AUM Crosses ₹80 Trillion for the First Time
Equity mutual fund (MF) flows staged a solid recovery in November, with net inflows rising 21% month‑on‑month to ₹29,911 crore, reversing a three‑month declining trend. The rebound was driven primarily by lower redemptions—down 11% during the month—while gross inflows registered a modest uptick of 1.4%.
Despite inflows appearing softer than July’s record ₹42,700 crore, industry experts emphasized that the trend remains structurally strong when adjusted for NFO (new fund offering) distortion.
“This is a constructive trend… inflows now appear more balanced and less sentiment‑driven,”
— Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India)
A Quiet but Meaningful Rebound in Equity Demand
Executives noted that the market saw a broad revival in risk appetite, reflected in stable inflows across most categories.
“Gross sales rose to ₹64,000 crore in November, reversing October’s dip… showing a stabilising risk appetite across investors.”
Key Highlights:
Strong participation across flexicap, midcap, smallcap, and large‑&‑midcap categories
Broad-based investor interest despite market volatility
More disciplined allocation patterns as one-year returns moderate
SIPs Continue to Anchor Long-Term Participation
Systematic investment plans (SIPs) remained the backbone of equity flows, contributing ₹29,445 crore—just marginally lower than October’s record ₹29,529 crore.
AMFI noted that the slight drop was simply due to month-end SIP dates falling on a weekend, not a change in investor sentiment.
Category-wise Breakdown: What Attracted Investors?
Flexicap Funds — Investor Favourite
Flexicap schemes once again led the charts with over ₹8,000 crore in net inflows.
Why the preference?
Flexibility to move across market caps
Current bias toward largecaps
Strong risk-adjusted performance profiles
Midcap & Smallcap Funds Remain Strong Draws
Both categories attracted ~₹4,400–4,500 crore each.
Drivers include:
Strong trailing returns
Broad earnings delivery in mid-small universe
Perception of superior compounding potential
Recent corrections offering attractive entry points
Multi-Asset & Commodity Funds Gain Momentum
Multi-Asset Funds:
Net inflows: ₹5,300 crore
Second-highest among hybrid & active equity categories
Gold & Silver ETFS / Commodity ETFs:
Still strong at ₹5,896 crore, despite moderation from October
Benefiting from their position at the top of performance charts
MF Industry AUM Crosses ₹80 Trillion Milestone
For the first time ever, India’s mutual fund industry crossed ₹80 trillion in AUM, reflecting robust investor confidence and rising financialization of savings.
“SIP assets alone now stand at ₹16.53 trillion—over 20% of industry AUM.”
This marks a major structural milestone for the MF ecosystem.
Debt Funds See Outflows Amid Liquidity Tightness
Contrary to equity flows, debt-oriented schemes witnessed net outflows of ₹25,693 crore.
Outflows were concentrated in:
Overnight funds
Liquid funds
Reason?
Corporate treasuries withdrew money to meet mid-quarter obligations
Ongoing liquidity tightening through the quarter
“The pressure on short-term categories was expected.”
Conclusion: Steady Confidence Despite Volatility
The November MF data signals:
Growing investor maturity
Shift toward diversified, disciplined investing
Strengthening long-term equity participation through SIPs
Broader market resilience even as debt categories react to liquidity cycles
With the MF industry achieving a historic ₹80 trillion in AUM, India’s financial ecosystem continues to deepen and expand.
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