Mutual Funds

November Fortnight Review: DIIs & MFs Stay Strong as FPIs Turn Sellers Again

Strong FPI Buying Led by Telecom and Oil & Gas – FPIs turned selective buyers in early November, with Telecommunication (₹9,413 Cr) and Oil & Gas (₹2,992 Cr) driving inflows on improving sector fundamentals. Moderate interest in Capital Goods (₹788 Cr) and Realty (₹236 Cr) reflected confidence in investment and urban demand, while Diversified (₹46 Cr) and Utilities (₹8 Cr) saw modest but steady participation.

FPI Selling Concentrated in IT, Consumer Services & Healthcare – FPIs saw the sharpest outflows in Information Technology (₹4,873 Cr), followed by Consumer Services (₹2,918 Cr) and Healthcare (₹2,526 Cr) as investors trimmed defensives. Selling pressure continued in Power (₹2,512 Cr) and FMCG (₹2,042 Cr), while Financial Services (₹2,041 Cr), Consumer Durables (₹1,379 Cr) and Services (₹673 Cr) witnessed moderate profit-taking.

FPIs Turn Sellers Again in the First Half of November: Foreign Portfolio Investors (FPIs) turned net sellers in Indian equities during the first half of November 2025, reversing the buying seen in October after three months of continuous outflows. FPIs sold ₹6,092 Cr in equities, with a secondary market selloff of ₹13,925 Cr partially offset by ₹7,833 Cr of IPO purchases.

Debt Inflows Continue: FPIs also invested ₹6,398 Cr into debt during the first half of November, extending their preference for fixed-income assets amid attractive yield differentials and expectations of RBI policy easing. The steady inflows reflect a continued tilt toward stability and carry-driven opportunities.

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

Equity MFs Hit Record AUM in October: Equity mutual funds scaled a fresh peak in October, with Net AUM rising 4.41% to an all-time high of ₹35.17 lakh crore, up from ₹33.68 lakh crore in September. The broader MF industry also touched a new milestone, with Net AUM growing 2.59% to ₹79.79 lakh crore. The surge was fueled by record SIP inflows and strong market performance, underscoring sustained investor confidence.

Mutual Funds Show Strong Appetite for October IPOs: Equity mutual funds displayed healthy participation in the October IPO pipeline, selectively allocating capital to newly listed companies. Key IPO entries included LG Electronics India (155 schemes; 4.00%), Tata Capital (49 schemes; 1.04%), Lenskart Solutions (49 schemes; 1.48%), WeWork India Management (34 schemes; 12.16%), Canara HSBC Life Insurance (28 schemes; 12.05%), Canara Robeco AMC (21 schemes; 10.55%) and Rubicon Research (18 schemes; 6.41%).

Mutual Funds Add Fresh Picks Across Financials & Autos: Beyond IPOs, mutual funds broadened their equity exposure by adding established names such as The Federal Bank, Canara Bank, Shriram Finance, LTIMindtree, Hindalco Industries, TVS Motor Company and Thyrocare Technologies.

Mutual Funds Make Complete Exits Across Key Sectors: On the exit side, equity schemes realigned portfolios by fully exiting holdings in HDFC Life Insurance Company, HDB Financial Services, TCS, REC, Power Finance Corporation, Cohance Lifesciences, The Indian Hotels Company, Suzlon Energy, Lupin, Voltas, Trent, Siemens Energy India, SBI Cards and Max Healthcare Institute.

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

Modest Buying, Rising Cash Buffers – Equity MFs Turn Selective in October: Mutual Funds continued to be net buyers in equities during October, though the pace of deployment slowed sharply to ₹23,063 Cr — marking a six-month low in fresh equity investments. The cautious approach pushed overall cash holdings higher to ₹2.09 Lakh Cr, up from ₹1.99 Lakh Cr in September.

AMC Cash Ratio Dips as Equity AUM Expands: The average cash holding ratio across the top 20 Asset Management Companies edged lower to 4.54% in October, from 4.57% in September, primarily driven by a rise in equity AUM and a marginal dip from previous months. The ratio remained below the 5% mark, reflecting robust equity AUM growth and sustained investor confidence amid healthy market sentiment.

PPFAS Mutual Fund continues to hold the highest cash-to-AUM ratio among equity-oriented schemes at 22.17% (₹29,168 Cr), signaling a distinctly conservative investment posture and flexibility for future market opportunities. Quant MF follows with a substantial 11.77% (₹10,366 Cr), while ICICI & HDFC MF remains comfortably above the industry average above 6%, reflecting cautious optimism.

Parag Parikh & SBI Contra Lead in Cash Proportion: Parag Parikh Flexi Cap Fund holds the highest cash-to-AUM ratio of 22.56% (₹28,386 Cr), reflecting a distinctly conservative and flexible strategy aimed at capitalizing on future market opportunities. Close behind, SBI Contra Fund maintains 20.20% (₹9,940 Cr) in cash, signalling a cautious yet opportunistic stance amid current market uncertainties. HDFC Flexi Cap Fund, with 12.84% (₹11,692 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 15.19% (₹11,289 Cr), reflecting a highly defensive and opportunistic positioning amid ongoing market volatility. Flexi Cap Funds follow with 9.81% (₹52,413 Cr) held in cash, highlighting their tactical flexibility to deploy funds across market caps as opportunities arise.

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

The mutual fund industry maintained its upward momentum in October 2025, with Average Assets Under Management (AAUM) rising 2.59% to ₹79.79 lakh crore, reflecting continued investor confidence and broad-based participation.

Equity mutual fund inflows declined by 19% month-on-month to ₹24,690 crore, marking the third consecutive month of moderation, yet equity funds recorded their 56th straight month of net inflows indicating sustained investor confidence.

Large Cap funds saw the highest decline in inflows among equity categories. Hybrid funds showed a robust 51% rise in inflows.

Debt mutual funds rebounded sharply with inflows of approximately ₹1.59 lakh crore, reversing outflows seen in the previous two months, led by strong inflows into liquid funds.

Systematic Investment Plan (SIP) inflows hit a new high of ₹29,529 crore with active SIP accounts rising.

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

October Snapshot: Selective FPI Participation and Slower MFs Deployment, DIIs Continue to Lead

October’s Sectoral Moves: FPIs Rotate Toward Financials & Energy

• Financials & Oil & Gas Lead the Buying: FPIs demonstrated clear sectoral preference in October, with the strongest inflows seen in Financial Services (₹13,279 Cr) and Oil & Gas (₹9,129 Cr). Metals & Mining (₹3,147 Cr) and Construction (₹2,233 Cr) also recorded meaningful inflows, supported by commodity cycle momentum and infrastructure project acceleration. Telecom (₹2,160 Cr) saw a sharp pickup in the second half of the month, indicating renewed confidence in tariff-led profitability improvements.
• Automobile & Power See Mixed Trends: Automobiles witnessed ₹1,560 Cr of inflows in the first half but reversed into withdrawals in the latter half, ending the month with ₹967 Cr — signaling near-term profit-taking after strong outperformance. Power turned marginally positive at ₹965 Cr, though flows moderated as valuations normalized.

Selling Concentrated in Defensives and Consumption-Oriented Sectors

• FMCG, Healthcare & Consumer Services Face Outflows: FPIs trimmed exposure heavily in FMCG (₹4,259 Cr), Healthcare (₹3,104 Cr) and Consumer Services (₹3,462 Cr) amid concerns over high valuations and moderating consumption indicators. The selling in FMCG was persistent across both halves, while Healthcare saw more aggressive unwinding early in the month. Consumer Durables (₹1,756 Cr) and Construction Materials (₹1,292 Cr) also witnessed withdrawals.
• IT Selling Eases: Information Technology continued to see selling, but the scale moderated to ₹2,194 Cr, compared to heavy liquidation in earlier months — suggesting incremental stabilization, though global IT spending outlook remains cautious. Selling in Chemicals (₹924 Cr) and Realty (₹806 Cr) remained moderate, with flows indicating position trimming rather than trend reversal.

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

October Fortnight Review: DIIs & MFs Stay Resilient as FPIs Return to Buying

FPIs Turn Selective Buyers in October – FPIs turned active in cyclical and financial sectors during the first half of October 2025, led by strong inflows into Financial Services (₹8,276 Cr), Automobile & Auto Components (₹1,560 Cr) and Metals & Mining (₹1,395 Cr). Buying interest also extended to Power (₹1,103 Cr) and Oil & Gas (₹1,086 Cr), reflecting confidence in core and growth-linked segments, while Construction (₹641 Cr), Services (₹234 Cr), and Media & Entertainment (₹87 Cr) saw modest participation.

FPI Selling Focused on FMCG and IT – On the flip side, FPIs trimmed holdings in FMCG (₹2,992 Cr) and Healthcare (₹2,739 Cr), extending pressure on defensive and consumption-driven sectors. Selling was also evident in Information Technology (₹1,927 Cr) and Consumer Services (₹1,785 Cr), while Capital Goods (₹851 Cr), Realty (₹807 Cr) and Chemicals (₹316 Cr) saw moderate outflows.

FPIs Turn Buyers in October – Foreign Portfolio Investors (FPIs) turned net buyers in Indian equities during the first half of October 2025, reversing three straight months of selloff. They invested ₹3,631 Cr into equities, supported by easing global risk sentiment, softening U.S. yields and rate cut expectations by major central banks — signaling renewed optimism toward India’s growth outlook. FPIs also infused ₹6,657 Cr into debt, extending their preference for fixed income assets amid attractive real yields and bond index inclusion prospects. The steady debt inflows highlight a tactical shift toward stability and yield-driven opportunities.

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

Equity MFs Maintain Growth in September: Equity mutual funds clocked a steady performance in September, with net AUM rising 1.81% to ₹33.68 Lakh Cr from ₹33.09 Lakh Cr in August. The overall mutual fund industry also saw moderate growth, with Net AUM up 0.57% to ₹75.61 lakh crore. The equity surge was powered by robust inflows, record SIP contributions and measured market gains during the month.

Mutual Funds Eye Fresh Opportunities in Select IPOs: Equity mutual funds showed strong primary-market participation in September, with selective allocations to newly listed companies. Key IPO entries included Urban Company(30 schemes; 3.26%), Jain Resource Recycling(16 schemes; 2.72%), and Seshaasai Technologies(13 schemes; 3.55%), reflecting rising investor appetite for innovative, asset-light and technology-driven business models.

Mutual Funds Expand Portfolios with New Stock Additions: Schemes actively added positions in Aptus Value Housing Finance, Britannia Industries Eicher Motors, Cohance Lifesciences, M&M, Hindustan Aeronautics, Tube Investments of India, Eternal, Indian Bank, SBI Cards and L&T Finance. The additions indicate broad-based buying across consumption, auto, financial, and manufacturing sectors.

Funds Restructure Portfolios with Targeted Exits: On the sell side, mutual funds exited holdings in Max Healthcare Institute, Siemens Energy India, Suzlon Energy, Hyundai Motor India, BSE, Tata Motors, Jio Financial Services, Indus Towers, PB Fintech, HDB Financial Services, PNB Housing Finance, ONGC, Page Industries, Sun Pharmaceutical Industries and AWL Agri Business.

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

Strong Buying – Equity MFs Deploy Cash: Equity mutual funds ramped up deployment in September 2025, investing ₹46,442 crore in equities. Overall cash holdings stood at ₹1.99 lakh crore, marginally higher than ₹1.98 lakh crore in August, reflecting an active and opportunity-driven allocation strategy.

AMC Cash Ratio Falls Further in September: The average cash holding ratio among the top 20 AMCs slipped to 4.57% in September from 4.82% in August, keeping overall levels below the 5% mark. The decline reflects strong equity buying and reduced inflows on a month-on-month basis.

PPFAS Mutual Fund continues to hold the highest cash-to-AUM ratio at 22.46% (₹28,152 Cr), reflecting a distinctly conservative stance and readiness for tactical deployment. Quant MF follows with a notable 10.90% (₹9,315 Cr), while HDFC MF maintains 6.23% (₹26,851 Cr), well above the industry average.

Parag Parikh & SBI Contra Lead in Cash Proportion: Parag Parikh Flexi Cap Fund continues to top the list with 22.71% of AUM in cash (₹26,129 Cr), followed closely by SBI Contra Fund at 21.57% (₹10,064 Cr), underscoring a strong liquidity stance. HDFC Flexi Cap Fund holds 11.38% (₹9,327 Cr), signalling ample readiness to deploy funds when valuations turn attractive.

Contra & Flexi Cap Funds Lead the Liquidity Charts: Contra Funds top the list with the highest cash-to-AUM ratio of 15.00% (₹10,661 Cr), underscoring a highly defensive and opportunistic approach amid market uncertainty. Flexi Cap Funds follow with 9.74% (₹49,502 Cr), indicating fund managers’ continued focus on liquidity and tactical flexibility to navigate volatile conditions.

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

The mutual fund industry witnessed steady momentum in September, with Average AUM rising 1.39% to ₹77.77 lakh crore, reflecting continued investor confidence and diversification trends.

Equity-oriented schemes continued to attract healthy participation, recording net inflows of ₹30,422 crore, though 9% lower than August. Within this segment, Flexi Cap funds stole the spotlight, posting the highest monthly inflows among all equity categories.

On the passive side, inflows surged 66%, underscoring the growing investor preference for low-cost investing amid subdued activity in active equity and debt schemes. Index funds and ETFs together recorded a 67% rise in inflows to ₹19,056 crore, led by Gold ETFs, which saw record inflows.

In contrast, debt mutual funds saw their average AUM decline 2.09% to ₹19.02 lakh crore, with net outflows of ₹1.02 lakh crore — a trend typically observed around quarter-end institutional redemptions.

Meanwhile, retail participation remained robust, with SIP inflows hitting an all-time high of ₹29,361 crore, marking another milestone in India’s growing culture of disciplined investing.

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

September 2025 reflected a market in transition—balancing between domestic growth optimism and external headwinds. The focus now shifts to upcoming monetary policy reviews, global trade developments, and economic data releases, which will shape the near-term trajectory. Market participants remain cautiously optimistic, prioritizing quality assets amid low volatility and seeking clarity on policy direction before committing larger positions.

• The 10-year government bond yield stayed broadly steady around 6.58%, with brief spikes due to fiscal concerns but anchored by stable domestic factors.
• The RBI maintained the policy rate at 5.50%, citing low inflation and scope to support growth; a lower borrowing calendar eased supply concerns.
• The RBI revised FY26 GDP growth to 6.8% (up 30 bps) and lowered CPI inflation forecast to 2.6%
• Corporate bond yields remained stable and edged lower than August levels, supported by strong demand for high-quality credit.
• Liquidity surplus declined sharply to ₹1.47 lakh crore in September from ₹2.84 lakh crore in August, mainly due to GST and advance tax outflows, leading to firmer money market rates.
• The Indian Rupee was the worst-performing Asian currency, weakening to near an all-time low of 88.80 due to FPI outflows and high U.S. rates.
• Crude oil prices remained range-bound near $68/barrel amid balanced supply-demand conditions.

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