India Mutual Fund Tracker — Equity Inflows Witness A Slowdown In August; Automobiles Hog The Limelight

Motilal Oswal says investors continued to park their money in mutual funds as inflows and contributions in SIPs stood at Rs 282.7 billion in August 2025.

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The month witnessed notable changes in the sector and stock allocation of funds. On an MoM basis, the weights of Automobiles, Technology, Consumer, Telecom, Retail, and Media increased, while those of Private Banks, Healthcare, Capital Goods, Oil & Gas, Chemicals, and Real Estate moderated.

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Motilal Oswal Report

The Nifty ended 1.4% lower month-on-month at 24,427 in August 2025 – the second consecutive month of a decline. Notably, with extreme volatility, the index hovered ~816 points before closing 342 points lower.

In Aug’25, DIIs posted the second-highest ever inflows at $10.8 billion following a record high in Oct’24. FIIs recorded the second consecutive month of outflows at $4.3 billion. FII outflows from Indian equities reached $15.1 billion in CY25YTD vs outflows of $0.8 billion in CY24.

DII inflows into equities remained robust at $62.3 billion in CY25YTD vs $62.9 billion in CY24. Total AUM of the MF industry, after scaling new highs in Jul’25 (Rs 75.4 trillion), declined marginally in Aug’25 to Rs 75.2 trillion (-0.2% MoM), primarily led by a MoM dip in AUM for equity (-Rs 209 billion), liquid (-Rs 70 billion), other ETF (-Rs 22 billion), and Gilt (-Rs 16 billion) funds.

Conversely, AUM of Gold ETFs increased Rs 49 billion, income funds rose Rs 36 billion, balanced funds grew Rs 25 billion, and arbitrage funds increased Rs 22 billion MoM. Equity AUM for domestic MFs (including ELSS and index funds) declined 0.6% MoM to Rs 36.2 trillion in Aug’25, led by a decline in market indices (with Nifty declining 1.4% MoM) and a decrease in sales of equity schemes (down 18.5% MoM to Rs 687 billion).

The pace of redemptions slowed down to Rs 338 billion (down 14.1% MoM). Consequently, net inflows moderated in Aug’25 to Rs 349 billion from Rs 450 billion in Jul’25.

Investors continued to park their money in mutual funds as inflows and contributions in systematic investment plans stood at Rs 282.7 billion in Aug’25 (-0.7% MoM and +20% YoY).

Click on the attachment to read the full report:

Motilal Oswal FUND FOLIO - Indian MF Tracker - September_2025.pdf
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