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Equity Mutual Fund Inflows Jump 21% in November as Investor Interest Rebounds

Equity Mutual Fund Inflows Jump 21% in November as Investor Interest Rebounds

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Equity mutual fund inflows rose sharply to ₹29,911 crore in November 2025, reflecting a solid 21% month-on-month increase. After a few months of cooling sentiment, investors returned strongly across most categories, helping revive overall market momentum.

The mutual fund industry’s total open-ended AUM reached ₹80.5 lakh crore, while equity AUM climbed to ₹35.66 lakh crore compared to ₹35.39 lakh crore in October. The renewed buying interest also coincided with the launch of 24 new schemes during the month, which collectively mobilised ₹3,126 crore.

Debt Funds Witness Heavy Outflows
Debt-oriented schemes saw a complete reversal in sentiment, registering a sharp outflow of ₹25,694 crore in November. This contrasts with heavy inflows seen in October, largely driven by quarter-end institutional allocations that did not repeat in November.

Liquid funds reported the highest outflow of about ₹14,051 crore, followed by overnight funds at ₹37,625 crore. Despite the broad outflow trend, some categories performed well. Money market funds drew ₹11,104 crore, while ultra-short-duration funds attracted ₹8,361 crore as investors preferred shorter-maturity, lower-risk options. Corporate bond funds and short-duration funds also saw mild positive flows.

Category-Wise Performance Shows Broad Participation
Large-cap funds saw a notable rebound, bringing in ₹1,640 crore almost 69% higher than the previous month. Large & mid-cap funds, along with mid-cap funds, continued to see strong investor interest, recording inflows of ₹4,503 crore and ₹4,487 crore, respectively.

Small-cap funds continued to attract steady participation, collecting ₹4,407 crore, a healthy rise of nearly 27% compared to October. The overall trend suggests that investors remained confident about long-term equity opportunities despite short-term market volatility.

However, two categories ELSS funds and dividend yield funds recorded net outflows of ₹570 crore and ₹278 crore, signalling selective investor behaviour within the equity segment.

Conclusion

Overall, November marked a strong revival in equity mutual fund sentiment, with robust inflows driven by broad investor participation across large-cap, mid-cap, and small-cap categories. While debt funds faced sharp outflows due to shifting institutional behaviour, shorter-duration options still attracted meaningful interest, highlighting a cautious but active investment approach. The steady rise in equity AUM, strong SIP culture, and healthy traction in new fund launches collectively reflect investors’ continued confidence in long-term market prospects despite short-term volatility.

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