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 outflow of ₹1.33 lakh cr in September, against a net inflow of ₹41,354 cr in August. Quarter-end advance tax payments and half-yearly balance-sheet requirements led to withdrawals of ₹1.72 lakh cr from short-end debt funds. Month-end Net AUM fell 5.1% to ₹82.64 lakh cr and Average AUM eased 1.4% to ₹87.09 lakh cr. Market-related valuation changes accounted for approximately 70% of the ₹4.44 lakh cr decline in Net AUM, after adjusting for net outflows of ₹1.33 lakh cr, as the Nifty 50 fell 6.1% during the month.
Inflows rose on lower redemptions. Equity net inflows rose 30.6% to ₹38,307 cr, a five-month high. Gross purchases rose only 1.7% to ₹74,832 cr, while redemptions fell 17.5% to ₹36,525 cr. Investors held their positions through a 6.1% fall in the Nifty 50, while steady fresh purchases show continued buying on declines.
Small Cap and Mid Cap funds set new highs. Small Cap and Mid Cap both drew record monthly inflows, of ₹9,039 cr and ₹7,835 cr respectively. Flexi Cap drew ₹6,702 cr. The Smallcap 250 is up 24.6% in H1FY27 against 1.3% for the Nifty 50. Flows are concentrated in the best-performing and most richly valued segment, which raises concentration risk.
Short-end funds drove the outflow. Debt schemes saw a net outflow of ₹1.83 lakh cr, against ₹8,127 cr in August. Debt Average AUM eased only 1.4% to ₹19.64 lakh cr. Withdrawals were concentrated in the second half of the month, around the advance tax date and quarter-end, so balances stayed high for most of September. Liquid Average AUM rose 1.0% and Overnight rose 2.2% despite net outflows. Money Market saw the sharpest decline in the group, at 6.4%.
Hybrid recorded its first net outflow since March 2026. The outflow was ₹457 cr, against an inflow of ₹10,045 cr in August. Hybrid Average AUM eased 0.9% to ₹12.55 lakh cr.
For a comprehensive understanding and deeper insights, please refer to our detailed report available at the link below.
Mutual Fund Flows – September 2026