September 2025 MF AUM sees debt fund outflows offset equity gains

13 Oct 2025 , 12:11 PM

BIG STORY – ADVANCE TAX PAYOUTS HIT DEBT FUND FLOWS

After robust net inflows of ₹1,78,794 Crore and ₹52,443 crore in July and August respectively, September 2025 saw net MF outflows of ₹ (43,146) Crore. Active equity fund inflows were lower at ₹30,422 Crore, but the real pressure was seen in debt funds as corporates and institutions withdrew heavily from short-end funds for advance tax payouts. Debt fund outflows in September 2025 stood at ₹ (1,01,977) Crore. The positive surprise was the sharp inflow of ₹19,057 Crore into passive funds.

Within active equity funds, flows were strongest in flexi-cap funds, mid-cap funds and small cap funds. The accent seems to be on allocation and alpha. Nearly 75% of inflows into passive funds in September 2025 were accounted for by gold ETFs and Silver ETFs. That is not surprising with precious metals at record highs. The NFO flows in September 2025 were relatively tepid at ₹1,959 Crore, led by thematic funds and index funds. Gross SIP flows set a new record at ₹29,361 crore in September 2025.

DEBT OUTFLOW IMPACT OFFSETS EQUITY GAINS

Here is a quick look at monthly flows across fund categories in last 13 months.

Month	Debt Fund Flows (₹ Crore)	Equity Fund Flows (₹ Crore)	Hybrid Fund Flows (₹ Crore)	Passive Fund Flows (₹ Crore)	Total MF Flows (₹ Crore)
Sep-24	(1,13,834)	34,419	5,366	3,254	(71,114)
Oct-24	1,57,402	41,887	17,189	23,428	2,39,907
Nov-24	12,916	35,944	4,443	7,061	60,295
Dec-24	(1,27,153)	41,156	4,703	784	(80,355)
Jan-25	1,28,653	39,688	9,011	10,255	1,87,551
Feb-25	(6,526)	29,303	7,050	10,249	40,063
Mar-25	(2,02,663)	25,082	(705)	14,149	(1,64,435)
Apr-25	2,19,136	24,269	14,248	20,229	2,76,827
May-25	(15,909)	19,013	20,942	5,526	29,108
Jun-25	(1,711)	23,587	23,429	3,997	49,095
Jul-25	1,06,801	42,702	21,162	8,259	1,78,794
Aug-25	(7,980)	33,430	15,614	11,437	52,443
Sep-25	(1,01,977)	30,422	9,683	19,057	(43,146)

Data Source: AMFI (negative figures in brackets)

In September 2025, equity, hybrid, and passive funds saw robust inflows, although they were lower than August levels. However, passive funds saw the best net inflows since April 2025. Nearly 75% of passive flows came from gold ETFs and silver ETFs. Debt fund outflows were largely at the short end of the yield curve, due to advance tax payouts. Equity and passive funds saw positive flows and MTM gains; but that was more than offset by the heavy outflows from debt funds, resulting in net outflow of ₹ (43,146) Crore overall.

HOW THE ₹75.61 TRILLION NET AUM ADDED UP

Here is the AUM break-up as of September 2025; across equity, debt, and alternates.

Month	Debt AUM (₹ Trillion)	Equity AUM (₹ Trillion)	Alternate AUM (₹ Trillion)	Total AUM (₹ Trillion)
Sep-24	14.97	31.10	20.75	67.09
Oct-24	16.64	29.89	20.46	67.26
Nov-24	16.86	30.36	20.60	68.08
Dec-24	15.67	30.58	20.41	66.93
Jan-25	17.06	29.47	20.46	67.25
Feb-25	17.08	27.40	19.79	64.53
Mar-25	15.21	29.45	20.82	65.74
Apr-25	17.57	30.58	21.59	70.00
May-25	17.54	32.05	22.34	72.20
Jun-25	17.58	33.47	23.10	74.41
Jul-25	18.76	33.28	23.07	75.36
Aug-25	18.71	33.09	23.13	75.19
Sep-25	17.80	33.68	23.88	75.61

Data Source AMFI

For September 2025, active debt fund AUM was 18.9% higher yoy at ₹17.80 Trillion. The AUM of equity funds touched an all-time-highs of ₹33.68 Trillion in September 2025, as MTM gains magnified the inflow effect. Equity fund AUM is 8.3% higher yoy. Alternate AUM is also up MOM due to strong flows; and 15.1% higher yoy. Here are the AUM shares.

Month	Active Debt Funds	Active Equity Funds	Hybrid Funds	Passive Funds	Solution Funds	Close-ended Funds
Apr-25	25.10%	43.68%	13.07%	17.02%	0.75%	0.37%
May-25	24.30%	44.40%	13.23%	16.96%	0.76%	0.36%
Jun-25	23.63%	44.98%	13.33%	16.96%	0.75%	0.35%
Jul-25	24.89%	44.16%	13.31%	16.56%	0.74%	0.34%
Aug-25	24.89%	44.00%	13.41%	16.63%	0.73%	0.34%
Sep-25	23.54%	44.55%	13.66%	17.18%	0.74%	0.34%

If you take a 5-month perspective, active equity funds, hybrid funds, and passive funds have gained AUM share, while debt funds, solution funds, and close-ended funds lost AUM share. Amidst the tariff tantrums and the concerns over H1-B visas and the US shutdown, there is a growing confidence of the ability of Indian equities to weather the storm.

ACTIVE DEBT FUNDS: THE QUARTERLY SELL-OFF

Selling in debt funds, as is normal each quarter, was focused at the short end of the yield curve. Debt funds saw net outflows of ₹1,01,977 Crore in September 2025. Liquid funds dominated outflows at ₹66,042 Crore; followed by Money Market Funds ₹17,900 Crore, and Ultra Short Duration Funds at ₹13,606 Crore. In terms of significant inflows, overnight funds saw net inflows of ₹4,279 Crore, while others were relatively smaller. The short-end stress is evident, but even the longer end is not too clear as RBI is yet to crystallize its rate view.

ACTIVE EQUITY FUNDS: ALLOCATION PLUS ALPHA HUNTING

In September 2025, equity funds saw lower flows MOM at ₹30,422 Crore; with all categories other than Dividend Yield Funds and ELSS seeing positive inflows. Big drivers of inflows into equity funds were Multi-Cap / Flexi-Cap Funds ₹10,589 Crore, Mid-Cap Funds ₹5,085 Crore, Small Cap Funds ₹4,363 Crore, and Large & Mid-Cap Funds ₹3,805 Crore. The focus continues to be on allocation and alpha hunting. The good news is that the obsession for sector / thematic funds has sharply reduced.

HYBRID FLOWS TAPER; PASSIVE FLOWS GLITTER

Hybrid fund net inflows were sober at ₹9,683 Crore in September 2025. Hybrid net inflows were dominated by Multi-asset Allocation Funds at ₹4,982 Crore; followed by Balanced Hybrid Funds at ₹2,014 Crore, Equity Savings Funds at ₹1,747 Crore, and BAFs at ₹1,689 Crore. For a change, arbitrage funds saw net outflows as part of liquidity management.

In the passive category; inflows were dominated by Gold ETFs at ₹8,363 Crore followed by Silver ETFs at ₹5,342 Crore, and Index ETFs at ₹4,451 Crore. Passive fund flows were at the highest level since April, but largely dominated by flows into gold and silver ETFs.

September 2025 flows had two underlying stories. The obvious story was the overall outflows triggered by corporate liquidity management. The bigger story was the gradual return of confidence in Indian equity narrative; both active and also passive!