December 2025 quarter sees Net MF inflows of ₹1.82 Trillion

30 Jan 2026 , 12:48 PM

MUTUAL FUND FLOWS DEC-25 QUARTER – MACRO VIEW

Let us first take a look at the macro picture of quarterly flows for December 2025? The gross flows into open ended funds in December 2025 quarter stood at ₹38.12 Trillion while the redemptions of open-ended funds in the quarter stood at ₹36.30 Trillion; resulting in net inflows into open ended funds of ₹1.82 Trillion. Close-ended funds saw negative flows in the quarter, due to redemption pressures but were insignificant in the overall scheme of mutual fund flows in the December quarter. The net inflow in Dec-25 quarter was at par with the Sep-25 quarter, but just about half of the Jun-25 quarter.

Macro picture of mutual fund flows in December 2025 quarter
Fund Category	Funds Mobilized	Redemptions	Net Flows	Net AUM (Sep-25)
Open Ended Funds	₹38,11,533 Crore	₹36,29,108 Crore	₹1,82,425 Crore	₹79,98,205 Crore
Close Ended Funds	₹16 Crore	₹74 Crore	₹ (58) Crore	₹25,174 Crore
Mutual Funds Overall	₹38,11,549 Crore	₹36,29,182 Crore	₹1,82,366 Crore	₹80,23,379 Crore

Data Source: AMFI

As of the close of December 2025 quarter, the net AUM of Indian mutual funds stood at ₹80.23 Trillion; compared to ₹75.61 Trillion, ₹74.41 Trillion, and ₹65.74 Trillion in last 3 sequential quarters. While flows have been at par with the previous quarter, the AUM has benefited from positive price action in the December 2025 quarter, which has boosted the assets under management (AUM). Over the last one-year period, the total AUM of mutual funds is up more than 20%, which is robust growth in a rather volatile year for markets.

1)    DEBT FUND FLOWS IN DECEMBER 2025 QUARTER

Flows into Debt Funds in the Dec-25 quarter (AMFI)
Funds Mobilized	Redemptions	Net Flow	Net AUM (Dec-25)
₹33.56 Trillion	₹33.54 Trillion	₹ (0.02) Trillion	₹18.10 Trillion

Data Source: AMFI

Like in the September 2025 quarter, the quarterly net inflows / outflows into debt funds were quite marginal. Typically, debt funds see heavy outflows at the end of the quarter due to advance tax outflows of corporates, but that is made up in the coming two months. Let us now turn to where the pressure points are in the quarter, and what are the booster points. Interestingly, the negative pressure has come largely from money market funds and overnight funds, while liquid funds actually saw positive flows in the quarter. Among other funds at the short end, the scene was mixed. However, longer end funds saw net outflows.

What were the positive and negative drivers of flows in December 2025 quarter? Among the big inflow stories were Liquid Funds ₹28,016 Crore, Ultra Short Duration Funds ₹5,779 Crore, and Low Duration Funds ₹2,251 Crore. Net outflows were most prominent in the quarter in Overnight Funds at ₹ (13,320) Crore, Money Market Funds ₹ (11,444) Crore, Long Duration Funds ₹ (2,612) Crore, Gilt Funds ₹ (1,904) Crore, and Dynamic Bond Funds ₹ (1,682) Crore. Other flows were not too significant.

How does AUM of debt funds compare? Total AUM of active debt funds at the close of December 2025 stood at ₹18.10 Trillion; compared to ₹17.80 Trillion, ₹17.58 Trillion, and ₹15.21 Trillion in the last 3 sequential quarters. What about share of debt fund AUM in overall AUM. As of December 2025 end, the share of debt fund AUM stood at 22.56%; compared to 23.54%, 23.71%, and 23.13% in the last 3 sequential quarters. December quarter is the first time in the year when debt fund share dropped below 23%.

2)    COLOUR OF EQUITY FUND FLOWS IN DECEMBER 2025 QUARTER

Flows into Equity Funds in the Dec-25 quarter (AMFI)
Funds Mobilized	Redemptions	Net Flow	Net AUM (Dec-25)
₹1,97,073 Crore	₹1,14,418 Crore	₹82,655 Crore	₹35.73 Trillion

Data Source: AMFI

Net flows into equity funds in the December 2025 quarter stood at ₹82,655 Crore; compared to ₹1,06,554 Crore, ₹66,869 Crore, and ₹94,073 Crore in the previous 3 sequential quarters. Active equity funds have seen a sharp fall in the inflows into sectoral and thematic funds, although that has been made by sharp inflows into allocation funds and alpha generation funds. Thematic funds have been the big drivers in previous quarters.

Let us look at the break-up of the inflow story in December 2025 quarter. The inflow story in the quarter was led by Flexi-Cap Funds at ₹27,083 Crore. This was followed by Mid-Cap funds at ₹12,470 Crore, Large & Mid-Cap funds ₹11,774 Crore, and Small Cap Funds at ₹11,707 Crore. Flows into Sectoral / Thematic funds that were leaders in previous quarters, were fairly subdued in the current quarter. Like in the September quarter; ELSS funds and dividend yield funds saw net outflows in December 2025 quarter.

Total AUM of equity funds as of December 2025 stood at ₹35.73 Trillion; compared to ₹33.68 Trillion, ₹33.47 Trillion, and ₹29.45 Trillion in previous 3 sequential quarters. The AUM recovery has been led by MTM gains and a surge in SIP flows during the quarter, even amidst rising SIP Stoppage Ratio. For the December 2025 quarter, AUM share of equity funds stood 44.5%; compared to 44.6%, 45.1%, and 44.8% in previous 3 sequential quarters.

3)    HYBRID FUND FLOWS IN DECEMBER 2025 QUARTER

Flows into Hybrid Funds in the Dec-25 quarter (AMFI)
Funds Mobilized	Redemptions	Net Flow	Net AUM (Dec-25)
₹1,34,373 Crore	₹95,235 Crore	₹39,138 Crore	₹11.59 Trillion

Data Source: AMFI

In December 2025 quarter, hybrid allocation funds (including solution funds) saw net inflows of ₹39,138 Crore; lower than the September 2025 quarter. Multi-Asset Allocation Funds (MAAF), once again, dominated the quarterly hybrid flows at ₹18,085 Crore; followed by Arbitrage Funds at ₹11,238 Crore, Aggressive Hybrid Funds ₹4,038 Crore, Dynamic Asset Allocation Funds (BAF) ₹3,047 Crore, and Equity Savings Funds ₹2,014 Crore. The only category of hybrid funds to see outflows in the quarter was Conservative Hybrid Funds.

Total AUM of hybrid funds (including solution funds) in December 2025 quarter stood at ₹11.59 Trillion; compared to ₹10.89 Trillion, ₹10.48 Trillion, and ₹9.35 Trillion in previous 3 sequential quarters. AUM share of hybrid funds in overall AUM in December 2025 stood at 14.44%; compared to 14.40%, 14.14%, and 14.22% in previous 3 sequential quarters. Within the hybrid space, while the broad theme has been allocation; the rally in gold and silver in 2025 has narrowed the investor preference to multi-asset allocation funds in last 2 quarters.

4)    PASSIVE FUND FLOWS IN DECEMBER 2025 QUARTER

Flows into Passive Funds in the Dec-25 quarter (AMFI)
Funds Mobilized	Redemptions	Net Flow	Net AUM as of Dec-25
₹1,24,373 Crore	₹65,596 Crore	₹58,777 Crore	₹14.57 Trillion

Data Source: AMFI

There was strong positive traction in Index ETFs at ₹29,102 Crore followed by Gold ETFs at ₹23,132 Crore and Index Funds at ₹5,387 Crore. In terms of AUM share in the December 2025 quarter, passive funds had an AUM share of 18.16; compared to 17.18%, 17.02%, and 17.45% in last 3 sequential quarters. The market share has jumped by nearly 100 bps in the last one quarter for passive fund; and this can be largely attributed to the heavy flows into gold and silver ETFs as well as the price appreciation in both these precious metals.

TAKEAWAYS FROM QUARTERLY ANALYSIS OF MF FLOWS

There are several interesting takeaways from the quarterly summary of mutual fund flows for the period ending December 2025.

• At a macro level, the net flows into mutual funds in the December 2025 quarter, remained almost the same as the September 2025 quarter. However, the net flows are still just about half the flows seen in the June quarter.
• The net AUM of all funds were up 6% on QOQ basis and over 20% on yoy basis. That is a good AUM growth in a year that has been marked by aggressive FPI selling, global event risk, market volatility etc.
• In the debt fund space, the action was largely in the funds at the short end of the yield curve. However, there has been some significant selling visible in long end funds like gilt funds, long duration funds, credit risk funds, dynamic bond funds etc.
• Equity fund flows were largely dominated by the allocation theme led by flexi-cap funds, large & mid-cap funds, and multi- cap funds and followed by alpha stories like mid-cap funds and small cap funds. Thematic funds have been subdued in the quarter.
• In the case of hybrid funds, the flows hint at the allocation theme falling into place. However, even within the allocation theme, the frenetic rise in the price of gold and silver ensured that MAAFs took away the bulk of the flows.
• Passive funds were the big story of the quarter with market share growing by a hefty 100 bps over September quarter. The surge was largely led by gold and silver ETFs as they turned in their best annual price performance since 1979.

 

LLM Summary The December 2025 quarter saw flows at par with the previous quarter. There were 3 broad themes that emerged and these themes were visible across different classes of mutual funds. AUM crossed ₹80 Trillion for the first time in this quarter. The first theme was the sustained enthusiasm of Indian retail and institutional investors in the India story. Against FPI selling of $19 Billion, domestic institutional buying was $73 Billion. SIP inflows were related and at new highs, as retail enthusiasm continued. The second big theme was the rise of asset allocation. That theme was evident in equity funds with preference for flexi-cap funds, multi-cap funds, and large & mid-cap funds. It was also seen in hybrid funds as allocation was the overpowering theme. Finally, within the allocation theme, the clear emerging preference is for multi-asset allocation. That is evident from MAAFs leading the flows into hybrid funds and gold and silver ETFs leading the flows into passive funds in the December quarter.