Mutual funds trends: Equity funds see 6% dip to Rs 28,054 crore in December; debt outflows hit AUM
The moderation in equity inflows came from Rs 29,911 crore in November, though collections were still higher than Rs 24,690 crore recorded in October, PTI reported.
The sharp sell-off in debt funds pulled the mutual fund industry into net outflows of Rs 66,591 crore during the month.Reflecting the impact of large debt withdrawals, the industry’s total assets under management (AUM) dipped to Rs 80.23 lakh crore in December from Rs 80.80 lakh crore in November.Among equity categories, most segments continued to attract net inflows, barring ELSS (equity-linked saving schemes) and dividend yield funds.
Flexi-cap funds led the pack with net inflows of Rs 10,019 crore in December, up from Rs 8,135 crore in the previous month, underlining their appeal amid uncertain market conditions.Mid-cap funds followed with inflows of Rs 4,176 crore, while large and mid-cap funds attracted Rs 4,094 crore and small-cap funds Rs 3,824 crore.
Large-cap funds saw net inflows of Rs 1,567 crore during the month.In contrast, ELSS funds recorded net outflows of Rs 718 crore, while dividend yield funds saw redemptions of Rs 254 crore, pointing to profit-booking and seasonal tax-related adjustments.Debt mutual funds bore the brunt of redemptions, witnessing massive net outflows of Rs 1.32 lakh crore in December, compared with outflows of Rs 25,692 crore in November.Gold exchange-traded funds (ETFs), meanwhile, saw a sharp rise in investor interest, with net inflows jumping to Rs 11,647 crore in December, from Rs 3,742 crore in November and Rs 7,743 crore in October.Commenting on the trend, Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal Asset Management Company, said “Equity gross sales increased by nearly 7% month-on-month to Rs 72,808 crore, while hybrid gross sales grew ~17% to Rs 16,548 crore, indicating sustained participation in market-linked products.
Flexi Cap funds were the key contributors, supported by NFO-led inflows, while Multi Asset Allocation funds recorded their peak gross sales in December 2025 at ~Rs 9,000 crore. Despite elevated redemptions, equity funds posted healthy net inflows of ~Rs 29,500 crore in December, reflecting profit-taking rather than risk aversion, with hybrid funds also remaining net positive.
Gold & Silver oriented funds also have witnessed over Rs 10000cr of inflows.”
