mutual fund flows

Mutual Funds Step Up Equity Buying; Cash Buffer Holds, Ratio Dips: Mutual funds stayed net buyers of equities in December, ramping up deployment to ₹38,939 Cr, including IPO allocations. Supported by steady inflows and record SIPs, cash holdings edged up to ₹2.08 lakh Cr from ₹2.02 lakh Cr in November—however, with Equity AUM rising, the cash-to-Equity AUM ratio declined, reflecting higher equity deployment.

AMC Cash Levels Decline Further in December: The average cash holding ratio across the top 20 Asset Management Companies eased to 3.83% in December, down from 4.06% in November, as rising equity AUM and sustained market deployment continued to absorb surplus cash. The further moderation keeps industry cash levels comfortably below the 5% mark, underscoring continued risk-on sentiment, strong investor confidence and fund managers’ preference to remain largely invested amid stable and resilient market conditions.

PPFAS Mutual Fund continues to hold the highest cash-to-AUM ratio among equity-oriented schemes at 21.12% (₹29,405 Cr), underscoring a notably defensive stance and ample dry powder for selective deployment amid market volatility. Quant MF also maintains an elevated cash position at 12.61% (₹10,690 Cr), followed by Motilal Oswal MF with 10.21% (₹12,018 Cr), reflecting a cautious yet opportunistic investment approach.

Motilal Oswal Flexi Cap Fund tops the chart with the highest cash-to-AUM ratio at 28.61% (₹3,965 Cr), highlighting a highly defensive and opportunity-ready stance. Parag Parikh Flexi Cap Fund follows with a substantial 21.49% cash holding (₹28,649 Cr), reinforcing its conservative positioning and flexibility for future deployment. SBI Contra Fund also maintains elevated liquidity at 18.04% (₹9,013 Cr), reflecting a cautious yet opportunistic investment approach.

Contra Funds lead the liquidity spectrum with the highest cash-to-AUM ratio of 13.48% (₹10,214 Cr), reflecting a distinctly cautious yet opportunistic positioning. Flexi Cap Funds follow with a sizable 11.02% cash holding (₹60,923 Cr), underlining their flexibility to dynamically allocate across market segments as valuations and opportunities evolve.

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

The Mutual Fund industry stayed resilient in December 2025, with AAUM rising 0.83% to ₹81.98 lakh crore from ₹81.32 lakh crore in November, supported by a mix of market gains and fresh inflows.

Equity-oriented mutual fund inflows declined by 6% month-on-month to ₹28,054 crore and falling 32% year-on-year versus ₹41,155 crore in December 2024.

Among hybrid schemes, Multi-Asset Allocation led with ₹7,426 crore, accounting for over 69% of total hybrid flows, signaling a clear investor tilt toward diversified exposure across equity, debt and commodities.

Passive flows rebounded sharply, with inflows jumping 74% from the lower November base.

Debt mutual funds saw heavy redemptions, with net outflows widening to ₹1.32 lakh crore largely due to quarter-end liquidity needs and advance tax/quarterly obligations.

SIP inflows hit a fresh record of ₹31,002 crore, up 5% from ₹29,445 crore in November, reinforcing the strength of systematic retail participation.

For more details, read our December 2025 Mutual Fund Flow Report.

CY2025 Wrap: FPIs Record Equity Exit, DIIs and MFs Keep Markets Supported With Record Investment

IT Faces the Sharpest Full-Year Selling: On the sell side, Information Technology witnessed the deepest FPI unwind in CY2025, with sales of ₹74,698 Cr—the largest among all sectors. The magnitude indicates a sustained preference to reduce exposure to global-demand-sensitive segments and/or to rebalance positioning after earlier cycles.

Consumption, Defensives and Rate-Sensitives Also See Large Exits: FPI selling was also heavy in FMCG (₹36,786 Cr), followed by Power (₹26,522 Cr) and Healthcare (₹24,967 Cr). Consumer Durables (₹21,369 Cr) and Consumer Services (₹16,524 Cr) further highlight broad-based trimming across consumer-facing pockets. In addition, FPIs sold Financial Services (₹14,903 Cr) and Realty (₹12,635 Cr)—both typically sensitive to rates, liquidity, and valuation swings. Collectively, the top sell sectors summed to ₹228,404 Cr of FPI selling in CY2025.

Telecom Dominates Full-Year FPI Purchases: Telecommunication emerged as FPIs’ biggest buy-side sector in CY2025, with purchases of ₹48,222 Cr—far ahead of other sectors. The scale of participation suggests sustained preference for structural themes such as pricing discipline, ARPU improvement visibility, and 5G-led monetisation.

Oil & Gas, Services and Chemicals Form the Next Buying Cluster: Beyond telecom, FPIs deployed meaningful capital into Oil & Gas (₹8,431 Cr) and Services (₹7,071 Cr), pointing to preference for cash-flow visibility and India’s services-led growth. Chemicals (₹6,017 Cr) and Metals & Mining (₹4,661 Cr) also saw healthy purchases, indicating selective appetite for commodity/industrial exposure. Media & Entertainment (₹301 Cr) remained marginal on the buy side. Overall, the top purchase sectors together accounted for ₹74,703 Cr of FPI buying in CY2025.

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

Market Cap Cutoffs Surge in AMFI’s Jan 2026 Categorisation :-AMFI’s latest stock categorisation (Jan 2026) signals a clear step-up in market size thresholds. The Large Cap cutoff—based on average market capitalisation over the last six months—has risen sharply to ₹1,05,000 crore, up from ₹91,500 crore. The Mid Cap cutoff has also moved higher to ₹34,700 crore from ₹30,700 crore, reflecting the broader expansion in market valuations witnessed through H2 CY2025.

AMFI’s Latest: 10 Stocks Elevated to Large Cap:- In AMFI’s latest stock categorisation, seven names have been upgraded from Mid Cap to Large Cap—Bosch, Canara Bank, Cummins India, HDFC AMC, Hero Motocorp, Muthoot Finance and Polycab India—as their six-month average market capitalisation moved above the Large Cap threshold (~₹1.05 lakh crore). Alongside these upgrades, ICICI Prudential AMC, LG Electronics India and Tata Capital have been newly included in the Large Cap bucket based on market-cap eligibility.

For more details read through our comprehensive report

Mutual Fund Industry AAUM Hits a Fresh Peak at ₹81 Lakh Crore as CY2025 Ends

Record High AUM on Robust Inflows & SIP Momentum: Closing CY2025 with strong momentum, the mutual fund industry’s Average AUM surged to a record ₹81 lakh crore in the October–December 2025 quarter, registering a solid 18.06% YoY rise. This jump reflects sustained industry strength, supported by robust inflows, rising retail participation and steady SIP traction that continues to reinforce long-term investing behaviour. On a sequential basis too, AAUM expanded by around ~5% QoQ versus the previous quarter, highlighting the mutual fund space’s widening footprint and growing relevance in India’s evolving investment landscape.

SBI MF Sets a New AAUM Record : SBI Mutual Fund surged to a fresh peak with a record ₹12.49 lakh crore AAUM in the October–December 2025 quarter, setting a new benchmark in the industry. The achievement also marks the 24th consecutive quarter of SBI MF retaining its position as India’s largest fund house, underlining strong and sustained investor confidence. Notably, SBI MF and ICICI Prudential MF remain the only two AMCs in the country with Average AUM above ₹10 lakh crore, underscoring the scale advantage and leadership of the top tier.

AAUM Growth Leaders Shine in Q3FY26: The mutual fund industry’s top players delivered a strong show in the October–December 2025 quarter, led by ICICI Prudential Mutual Fund, which recorded the highest absolute jump in average AUM at ₹61,622 crore. The momentum was also visible across other large fund houses, with SBI, Nippon India and HDFC Mutual Fund emerging as key contributors to the quarter’s AAUM expansion.

Rankings Hold Firm, Top-10 Sees a Twist: The mutual fund industry continues to reflect strong structural stability, with the top 3 and top 8 fund houses maintaining their positions for an 18th consecutive quarter. This quarter, Mirae Mutual Fund re-entered the top 10 by overtaking DSP Mutual Fund, pushing DSP out of the top ten by average AUM.

Rising AMCs Gain Ground: Several fund houses strengthened their standings this quarter, with PPFAS, Invesco, Motilal Oswal, WhiteOak Capital, Jio BlackRock, Zerodha, Helios and Groww moving up the ranks, signalling steady progress versus previous quarters. The key highlight was The Wealth Company Mutual Fund, which debuted with NFOs this quarter, built an AAUM of ₹1,421 crore, and closed at 43rd position among 51 AMCs.

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

CY2025 was a high-activity IPO year – India saw 375 IPOs raising ₹1,95,371 Cr— higher than 2024 and far above 2023, highlighting a much larger primary market footprint.

Mainboard dominated fundraising despite fewer issues – Just 107 Mainboard IPOs raised ₹1,83,172 Cr, accounting for the bulk of total capital raised. 268 SME IPOs kept the listing pipeline active, but contributed a smaller ₹12,199 Cr, showing SMEs drove count while mainboard drove cash.

“Quantity + Quality” mix defined the year – The market combined high number of issues (volume) with large-ticket capital mobilisation (value)—a balanced but differentiated IPO landscape.

Returns turned more selective, not sentiment-led – With reports indicating near-₹2 lakh crore fundraising and ~94% of funds from mainboard, the year also saw cooling listing pops and retail euphoria, making IPO performance more stock-specific—where selection mattered as much as subscription.

IPOs in 2025: IPO-Picker’s Market – With the success rate around ~50% in CY2025, IPO gains can no longer be taken for granted—outcomes have turned clearly IPO-selective. Unlike previous years when IPOs delivered broad-based wins, 2025 showed an almost even split between winners and losers, highlighting a more mature market where quality and valuation matter more than hype.

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

What stood out in CY2025
Metals stole the show: Commodities led the year, with Silver up ~148% and Gold up ~65%, supported by Fed-cut expectations, ETF/central-bank demand, supply tightness and geopolitical hedging.

Global equities: strong upside, uneven leadership: Korea (+75.63%) topped the charts, followed by Spain (+49.27%) and Brazil (+33.95%). Developed markets stayed broadly positive, while India (+10.51%) remained in the green but trailed most peers.

India equities: green year, narrow rally: Frontline indices held up (Nifty 50 +10.51%, Sensex +9.06%), but broader participation weakened (Smallcap 250 −6.01%), reinforcing a quality-led, selective market.

Oil under pressure: Crude declined ~18%–20% (Brent/WTI), as oversupply concerns outweighed intermittent geopolitical spikes.

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

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.