Month: December 2025

Mutual Funds Step Up Equity Buying, Cash Buffer Dips: Mutual Funds remained strong buyers in equities during November, stepping up equity deployment sharply to ₹43,465 Cr, including allocations to IPOs. This increased deployment nudged overall cash holdings slightly lower to ₹2.02 lakh Cr in November from ₹2.09 Lakh Cr in October.

AMC Cash Levels Ease Further in November: The average cash holding ratio across the top 20 Asset Management Companies softened to 4.06% in November, down from 4.54% in October, as equity AUM rose and market investments increased. The continued decline keeps the industry’s cash levels well below the 5% threshold, highlighting strong investor confidence, persistent risk-on sentiment and a preference among fund managers to stay more fully invested amid resilient market conditions.

PPFAS Mutual Fund continues to hold the highest cash-to-AUM ratio among equity-oriented schemes at 21.37% (₹28,992 Cr), signaling a distinctly conservative investment posture and strong flexibility for future market opportunities. Quant MF follows with a substantial 13.91% (₹12,082 Cr), while HDFC MF (6.55%) and Motilal Oswal MF (6.52%) remain comfortably above the industry average, reflecting cautious optimism.

Parag Parikh & SBI Contra Lead in Cash Proportion: Parag Parikh Flexi Cap Fund holds the highest cash-to-AUM ratio at 21.71% (₹28,178 Cr), reflecting a distinctly conservative and flexible strategy aimed at capitalizing on future market opportunities. Close behind, SBI Contra Fund maintains a substantial 19.87% (₹9,903 Cr) in cash, signalling a cautious yet opportunistic stance amid current market uncertainties. HDFC Flexi Cap Fund, with 13.81% (₹12,989 Cr), also demonstrates a prudent approach, keeping ample liquidity for tactical deployment as valuations evolve.

Contra & Flexi Cap Funds Lead the Liquidity Charts: Contra Funds top the liquidity chart with the highest cash-to-AUM ratio of 15.10% (₹11,392 Cr), reflecting a highly defensive and opportunistic positioning amid ongoing market volatility. Flexi Cap Funds follow with a strong 10.06% (₹54,905 Cr) held in cash, highlighting their tactical flexibility to deploy funds across market caps as opportunities emerge.

For a comprehensive understanding and more insights, please go through our detailed report.

The Mutual Fund industry sustained its growth trajectory in November 2025, with Average Assets Under Management (AAUM) rising 1.91% to ₹81.32 lakh crore, supported by market gains despite softer net inflows.

Equity mutual fund inflows rose 21% month-on-month to ₹29,911 crore, marking a strong rebound driven by broad-based investor participation.

Large-cap funds staged a sharp recovery, while mid-cap, small-cap, and large & mid-cap categories also saw healthy inflows, reflecting persistent investor appetite across the equity curve.

Hybrid funds maintained strong traction with steady inflows, supported by continued interest in Arbitrage funds.

Passive fund inflows moderated during the month, indicating a shift in investor preference toward active strategies such as flexi-cap and mid-cap funds.

Debt mutual funds saw net outflows of ₹25,693 crore, reversing October’s strong inflows; however, the segment’s average AUM rose 1.96% to ₹19.81 lakh crore, aided by market gains.

SIP inflows remained robust at ₹29,445 crore, holding steady near record highs, reflecting strong retail discipline and continued preference for systematic investing.

For more details read through our comprehensive Mutual Fund Flow Report for November, 2025.

November Snapshot: FPIs Turn Sellers Again, DIIs Anchor the Market, MFs Strengthen Deployments

November’s Sectoral Shifts: FPIs Turn Aggressive Buyers in Telecom & Energy

• Telecom & Oil & Gas Drive Inflows: FPIs displayed strong conviction in high-beta sectors during November, with Telecommunication topping the chart at ₹14,326 Cr, supported by sustained tariff hikes and improved cash-flow visibility. Oil & Gas followed at ₹7,169 Cr, driven by firm crude price trends and upbeat forecasts for gas transmission and refining segments. Capital Goods (₹2,495 Cr) continued to see healthy buying as industrial capex momentum remained robust, while Diversified (₹56 Cr) and Utilities (₹35 Cr) saw measured inflows.

Selling Pressure Intensifies in Consumption & IT-Heavy Sectors

• IT, FMCG & Consumer Services Witness Heavy Selling: Outflows were concentrated in defensives and consumption-oriented spaces. Information Technology recorded net selling of ₹5,794 Cr, though the second half saw some easing, hinting at tactical stabilization after months of persistent liquidation. FMCG (₹4,764 Cr) and Consumer Services (₹3,993 Cr) faced strong withdrawals through the month, reflecting concerns around slowing demand, margin pressures and stretched valuations.
• Financials & Power See Moderation in Outflows: Financial Services saw net selling of ₹3,178 Cr, with the first half accounting for a larger share of the unwinding as FPIs booked profits post strong quarterly results. Power (₹2,615 Cr) experienced outflows primarily in the early part of the month as valuations normalized across utilities and generation companies.

For a comprehensive understanding and more insights, please go through our detailed report.