Mata Securities India Pvt Ltd | SEBI Registered Research Analyst | Reg. No. INH000022668 | AMFI Registered MF Distributor | ARN-0158
The mutual fund industry recorded a net inflow of ₹1.74 lakh cr in October, reversing September’s net outflow of ₹1.33 lakh cr, as corporate cash returned to overnight and liquid funds after quarter-end. Average AUM eased 2.2% to ₹85.18 lakh cr, as the month began from September’s lower month-end base. Month-end Net AUM rose 0.9% to ₹83.39 lakh cr. Equity inflows moderated 13.9% to ₹32,994 cr, a 68th consecutive month of inflows, while flows rotated towards large caps. SIP contributions eased 1.0% to ₹32,160 cr, and SIP discontinuations exceeded new registrations during the month.
Inflows moderated as purchases slowed. Equity net inflows fell 13.9% to ₹32,994 cr. Gross purchases fell 12.4% to ₹65,581 cr, while redemptions fell 10.8% to ₹32,588 cr. September’s improvement was driven by lower redemptions; October’s moderation was driven by lower fresh purchases. Equity Average AUM eased 3.2% to ₹37.28 lakh cr.
Flows rotated towards large caps, in line with market performance. Large & Mid Cap fund inflows nearly doubled to a record ₹8,484 cr, above the previous high of ₹5,307 cr in March 2026. Large Cap fund inflows rose 20% to ₹1,032 cr, the highest since June. The combined share of Small Cap and Mid Cap funds in equity flows fell to 34% from 44%, confirming the rebalancing towards large caps noted last month.
Short-end flows returned after quarter-end, but only in part. Debt schemes recorded a net inflow of ₹1.13 lakh cr, against an outflow of ₹1.83 lakh cr in September. Overnight funds recorded a net inflow of ₹54,893 cr, the highest monthly inflow since at least 2021, and Liquid funds recorded a net inflow of ₹70,534 cr. The recovery was weaker than in October 2025, when debt funds recorded a net inflow of ₹1.60 lakh cr, likely reflecting tighter banking-system liquidity.
Hybrid returned to inflow on arbitrage flows. Hybrid schemes recorded a net inflow of ₹3,514 cr, against an outflow of ₹457 cr in September, as arbitrage funds recorded a net inflow of ₹3,929 cr after September’s quarter-end outflow of ₹3,956 cr. Excluding arbitrage, hybrid flows turned to an outflow of ₹415 cr, against an inflow of ₹3,499 cr in September. Hybrid Average AUM eased 1.7% to ₹12.34 lakh cr.
For a comprehensive understanding and deeper insights, please refer to our detailed report available at the link below.
Mutual Fund Flows – October 2026