Mutual fund industry sees net outflow of ₹1.33 lakh crore despite gold ETF boom

The mutual fund industry recorded a net redemption of ₹1.33 lakh crore in September, a stark reversal from the ₹41,353 crore net inflow logged in August. Fixed‑income schemes were the primary source of the outflow, with debt fund redemptions leaping to ₹1.83 lakh crore from just over ₹8,000 crore a month earlier.

The large withdrawals pulled the total AUM down to ₹82.64 lakh crore, a drop of approximately ₹4.44 lakh crore from the previous month’s peak. The decline emphasizes the sensitivity of the Indian mutual fund ecosystem to shifts in investor confidence, particularly within the debt segment.

Despite the broad outflow, niche categories such as multi‑asset allocation funds and large‑cap equity funds showed resilience, posting modest net inflows that helped cushion the overall impact.