Equity mutual fund net inflows experienced a decline in December 2025, with investors channeling ₹28,054 crore into equity schemes during the month. This represents a 6% decrease from the previous month's inflows of ₹29,911.05 crore in November 2025, according to data released by the Association of Mutual Funds in India (AMFI) on Friday, January 9.

Monthly Inflow Comparison

The month-on-month performance of equity mutual fund inflows shows a notable moderation in investor interest during December 2025.

Market Dynamics

The decline in equity mutual fund inflows during December 2025 indicates a shift in investor sentiment compared to the preceding month. The reduction of ₹1,857.05 crore in absolute terms reflects the changing investment patterns as the year concluded.

The AMFI data provides crucial insights into the mutual fund industry's performance and investor behavior patterns. The 6% decline suggests that despite continued positive inflows, the pace of investment moderated during December 2025 compared to November's stronger performance.

Industry Outlook

The equity mutual fund segment continues to attract significant investor interest, with December 2025 still recording substantial net inflows of over ₹28,000 crore. While the month-on-month decline indicates some moderation, the absolute figures demonstrate the continued confidence of investors in equity mutual fund schemes as an investment avenue.

Net equity mutual fund inflows declined by 6% to ₹28,035 crore in December from ₹29,894 crore in November, according to data released by the Association of Mutual Funds in India (AMFI). The decline reflects a broader moderation in investor appetite for equity funds during the month.

Industry AUM Witnesses Monthly Decline

The mutual fund industry's total assets under management (AUM) stood at ₹80.23 lakh crore in December, down from ₹80.80 lakh crore in the previous month. This represents a month-on-month decline of approximately 0.70%, indicating reduced investor participation across the mutual fund ecosystem.

Category-wise Performance Analysis

Equity fund inflows showed varying patterns across different market capitalization segments during December:

Small-Cap Funds Lead Decline

Small-cap funds witnessed the steepest decline among equity categories, with net inflows dropping to ₹3,824 crore in December from ₹4,407 crore in November. This translates to a month-on-month decline of approximately 13%, suggesting reduced investor interest in smaller company stocks during the period.

Large and Mid-Cap Segments Show Moderation

Large-cap fund inflows stood at ₹1,567.40 crore in December compared with ₹1,640 crore in November, representing a decline of about 4%. Mid-cap fund inflows also moderated to ₹4,176 crore from ₹4,487 crore over the same period, showing a decrease of nearly 7%. The across-the-board decline in equity fund inflows indicates a cautious approach by investors across all market capitalization segments during December.