India's mutual fund industry rebounded sharply in October 2026, recording net inflows of ₹1.74 lakh crore after facing withdrawals of ₹1.33 lakh crore in September. This turnaround, as reported by Moneycontrol and the Association of Mutual Funds in India (AMFI), was largely driven by strong investments in debt-oriented schemes, despite a moderation in equity fund inflows. The data indicates renewed investor interest across various mutual fund categories, although trends varied significantly among them.
Debt mutual funds attracted net investments of ₹1,13,437.89 crore in October, marking a substantial recovery from September's outflows of ₹1,83,155.76 crore. This shift represents a month-on-month turnaround of approximately ₹2.97 lakh crore, with assets under management (AUM) for debt schemes rising to ₹18.81 lakh crore from ₹17.64 lakh crore. Meanwhile, equity mutual funds saw net inflows decline by 13.9%, dropping to ₹32,993.64 crore from ₹38,306.55 crore in the previous month, leading to a decrease in equity fund AUM from ₹37.54 lakh crore to ₹37.15 lakh crore.S2
Hybrid mutual funds also showed positive movement, registering net inflows of ₹3,514.06 crore, a notable increase from withdrawals of ₹456.68 crore in September. Index funds recovered as well, attracting ₹3,090.51 crore after experiencing outflows of ₹3,614.03 crore the month prior. In contrast, exchange-traded funds (ETFs) experienced a surge in demand, with inflows rising nearly 31% to ₹20,303.98 crore from ₹15,501.40 crore. However, gold ETF investments saw a decline of approximately 22%, falling to ₹3,474.03 crore from ₹4,450.61 crore in September.S2
Despite the overall recovery, the mutual fund landscape remains uneven, particularly as overseas mutual fund schemes continued to experience withdrawals, with net outflows widening to ₹370.11 crore from ₹159.18 crore. The October data reflects a significant recovery in industry flows, primarily supported by debt schemes and stronger ETF investments, while slower equity inflows and reduced gold ETF collections highlight shifting investor preferences across different asset classes.S2
