India’s Mutual Funds See Record Inflows Amid Market Volatility

Indian investors pour record sums into mutual funds despite market decline, with SIPs hitting new highs in September.

October 12, 2026 One Min Read

POLICY WIRE — New Delhi, India — Indian equity mutual funds saw a five-month high of Rs 38,307 crore ($4 billion) in inflows during September, fueled by strong retail participation despite a challenging market environment and declining stock indices.

Data from the Association of Mutual Funds in India (AMFI) revealed that systematic investment plans (SIPs) reached an all-time monthly peak of Rs 32,490 crore in September, surpassing the previous month’s figure of Rs 32,297 crore. This reflects continued investor confidence amid ongoing economic uncertainties and geopolitical tensions.

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Despite a 9% month-on-month decline in equity fund inflows to Rs 304.22 billion rupees, retail investors maintained their commitment to long-term investment strategies. Factors such as expectations of GST rate reductions and improved trade relations with the U.S. have bolstered market sentiment, contributing to sustained capital flows into equity and hybrid mutual funds.

Reporting by Policy-Wire (PW)

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