Equity inflows surge in Nov on lump-sum recovery, steady SIPs: Report

India's mutual funds saw a strong rebound in equity inflows in November 2025, rising 22.2% to Rs 393 billion. This growth was fuelled by a 274% surge in lump-sum investments and robust SIP contributions of Rs 294 billion, a new report shows.

India's mutual fund industry witnessed a rebound in equity inflows in November 2025, supported by steady systematic investment plan (SIP) contributions and a recovery in lump-sum investments, according to a sector update by Nuvama Research.

Equity Inflows Surge on Lump-Sum Recovery

Monthly SIP inflows remained robust at Rs 294 billion, broadly flat on a month-on-month basis, underlining continued retail participation despite market volatility, the report said. A sharp revival in lump-sum investments which surged 274% month-on-month to Rs 98.8 billion helped push active equity net inflows up by 22.2% from October to Rs 393 billion during the month, it added.

Market Rally Boosts Equity AUM

Notably, in November,the Nifty 50 index rose 1.9%. This, the report said, contributed to a 1.5% month-on-month increase in active equity AUM to Rs 44.4 trillion.

Active Equity Flow Analysis

For the financial year so far, active equity net inflows stood at Rs 2.9 trillion, representing about 8% of the industry's opening AUM, though still 12.9% lower year-on-year, it said.

Breakdown by Fund Category

Large- and mid-cap funds attracted the largest share of inflows at 27%, followed by flexi-cap funds at 20.7% and small-cap funds at 11.2%. Thematic funds accounted for a relatively modest 4.7% of net inflows.

Seven new active equity fund offers (NFOs) launched during the month mobilised Rs 26.6 billion, while existing schemes saw inflows jump 32.2% month-on-month to Rs 366.7 billion.

Trends in Other Fund Segments

Passive funds, including exchange-traded funds (ETFs) and index funds, recorded net inflows of Rs 154 billion in November, slightly lower than the previous month. Gold ETFs and overseas fund-of-funds together attracted Rs 39 billion. Arbitrage funds, however, saw net inflows decline sharply by nearly 40% month-on-month to Rs 42 billion.

Debt Schemes Subdued, Liquid Funds See Outflows

In the said period, the flows into debt-oriented schemes remained subdued, with net inflows of Rs 144 billion, while liquid funds witnessed significant net outflows of Rs 406 billion during the month, reflecting short-term treasury and institutional movements, the report said.

Positive Outlook Ahead

Nuvama Research said the recovery in equity markets, combined with the continued strength of SIP inflows, should support overall industry volume growth in the coming months. (ANI)

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