Indian Mutual Funds See AUM Slip; Flexi-Cap, Gold ETFs Outperform
Overview
Indian mutual fund assets under management eased to Rs 80.2 lakh crore in December 2025 amidst market jitters. Despite this, equity funds attracted substantial net inflows totaling Rs 28,054 crore, with flexi-cap categories leading the charge at Rs 10,019 crore. Investors also pushed Systematic Investment Plans (SIPs) to an all-time high of Rs 31,002 crore, while gold ETFs posted record inflows of Rs 11,000 crore, highlighting persistent investor confidence.
Mutual Fund Assets Ease Amid Market Jitters
The Indian mutual fund industry's assets under management (AUM) slipped to approximately ₹80.2 lakh crore in December 2025, a slight decrease from ₹80.8 lakh crore in November. This moderation reflects ongoing market volatility and foreign institutional investor (FII) outflows. Key market indices mirrored this cautious sentiment, with the Sensex and Nifty experiencing modest declines.
Equity Inflows Bolstered by Flexi-Cap Funds
Despite the overall AUM dip, equity mutual funds continued to draw strong investor interest, posting net inflows of ₹28,054 crore. This marks the 58th consecutive month of positive equity fund flows. Flexi-cap funds emerged as the top performer within this category, attracting ₹10,019 crore, a significant 23.2% increase month-on-month. The launch of new funds, such as the Abakkus Flexi Cap Fund, significantly boosted inflows for the category.
SIPs Hit Record Highs, Driving Retail Participation
Systematic Investment Plan (SIP) contributions reached an all-time high of ₹31,002 crore in December. This sustained strong performance underscores robust retail investor participation and a growing preference for disciplined, long-term investing. A total of 60.46 lakh new SIPs were registered during the month, indicating continued faith in market growth despite fluctuations.
Gold and Passive Funds Shine as Safe Havens
Gold Exchange Traded Funds (ETFs) saw their highest ever inflows, raking in ₹11,000 crore in December alone. This surge highlights gold's appeal as a safe-haven asset amidst market uncertainty and its increasing role as a strategic portfolio diversifier. The passive fund segment, including index funds and ETFs, collectively attracted ₹26,723 crore in net inflows.
Sectoral Funds Face Steep Decline
Investor appetite for sectoral and thematic funds cooled significantly, with inflows falling by 49.3% month-on-month to ₹946 crore. This shift suggests a move away from concentrated bets towards broader, more diversified investment categories like flexi-cap funds, which offer greater flexibility across market capitalizations.
