Mata Securities India Pvt Ltd | SEBI Registered Research Analyst | Reg. No. INH000022668 | AMFI Registered MF Distributor | ARN-0158
Equity Mutual Fund AUM Declines 4.26% in September Amid Sharp Market Correction: Equity mutual funds’ net AUM declined 4.26% MoM to ₹37.54 lakh crore in September, from ₹39.21 lakh crore in August, marking a reduction of nearly ₹1.67 lakh crore during the month. The decline was primarily driven by a sharp correction of over 6% in equity indices, which eroded portfolio valuations and outweighed the impact of fresh investor inflows, pulling equity assets lower from their record August levels.
Flexi Cap Funds Slip Below ₹6 Lakh Crore AUM but Retain Top Spot: Flexi Cap Funds’ net AUM declined to ₹5.88 lakh crore in September, from ₹6.11 lakh crore in August, amid a sharp correction in equity markets. Despite the decline, the category remained the largest equity mutual fund segment for the eleventh consecutive month. Mid Cap Funds followed at ₹5.14 lakh crore, down from ₹5.43 lakh crore in August, making Flexi Cap and Mid Cap Funds the only two equity categories with AUM above ₹5 lakh crore each. The decline across both categories primarily reflects market-driven valuation erosion, despite continued investor interest in diversified and mid-cap strategies.
Mutual Funds Show Strong Appetite for September IPOs, with NSE, Rentomojo and SS Retail Leading Fresh Additions: India’s primary market witnessed 70 IPO listings in September 2026, comprising 32 Mainboard and 38 SME IPOs, collectively raising ₹43,460 crore. Equity mutual funds showed strong participation in new offerings, with 98 schemes adding National Stock Exchange of India (NSE) and collectively acquiring 0.60% of the company, alongside its reported ₹22,600 crore IPO fundraising. Other notable additions included Rentomojo (35 schemes; 14.02% stake acquired), Aditya Infotech (23; 1.75%), SS Retail (22; 6.58%), Kanohar Electricals (19; 7.24%), Manipal Payment and Identity Solutions (17; 3.26%), Moneyview (15; 3.25%) and Hero Motors (15; 6.31%). The relatively higher stakes acquired in Rentomojo, Kanohar Electricals and SS Retail indicate significant mutual fund participation in these companies.
Mutual Funds Add Fresh Positions Across Fintech, Healthcare, Financials and Capital Markets: Beyond new offerings, mutual fund schemes initiated exposure to Divi’s Laboratories, Multi Commodity Exchange of India, Gland Pharma, HDFC Life Insurance, Sona BLW Precision Forgings , One97 Communications and Meesho. These additions reflect diversified investment interest across pharmaceuticals, capital-market infrastructure, insurance, auto components, fintech and digital commerce, highlighting selective accumulation in established businesses alongside emerging growth opportunities.
Gland Pharma, Swiggy and PB Fintech Lead Mutual Fund Buying: Among the top 20 traded stocks, equity mutual funds recorded the strongest net additions in Gland Pharma, Swiggy and PB Fintech, followed by Lenskart Solutions, DLF, Multi Commodity Exchange of India, Meesho and Bharat Forge. The buying pattern reflects selective accumulation across pharmaceuticals, fintech, digital commerce, consumer platforms, real estate, capital-market infrastructure and industrials. Major banking stocks, including HDFC Bank and Kotak Mahindra Bank, also witnessed net additions.
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