📉 Equity Mutual Fund Investments Decline in December — Yet SIP Investments Set a Record
Equity MF Inflows Slip in december 2025In december 2025, equity mutual fund (MF) investments in india declined, with net inflows falling by around 6–6.2 % month‑on‑month to approximately ₹28,054 crore, down from about ₹29,911 crore in November, according to official AMFI data. This marked a moderation in investor inflows across most equity categories.The overall mutual fund industry also recorded significant net outflows in december as redemptions — especially from debt schemes — outpaced gross mobilisations, leading to a slight dip in assets under management (AUM) at around ₹80 lakh crore by month‑end.Market analysts say this slowdown partly reflects cautious investor sentiment, particularly amid volatility in small‑ and mid‑cap stocks and higher redemption activity from non‑equity funds.📈 But SIP Investments Tell a Different StoryDespite the overall dip in equity inflows, Systematic Investment Plan (SIP) contributions soared to record levels in December:🔹 SIP inflows hit an all‑time high of ₹31,002 crore during the month, surpassing the previous figures recorded in November.
🔹 The number of SIP accounts also climbed, reflecting broader retail participation.
🔹 This suggests that while one‑time lump‑sum investments moderated, many investors are continuing regular, disciplined investing through SIPs — a trend that has been building throughout the year.Industry experts note that SIPs have become a “way of life” for mutual fund investors, with many preferring regular contributions over trying to time the market.📌 What This Mixed Trend Means1. Market Sentiment Softens in Lump‑Sum Channels
🔹 The number of SIP accounts also climbed, reflecting broader retail participation.
🔹 This suggests that while one‑time lump‑sum investments moderated, many investors are continuing regular, disciplined investing through SIPs — a trend that has been building throughout the year.Industry experts note that SIPs have become a “way of life” for mutual fund investors, with many preferring regular contributions over trying to time the market.📌 What This Mixed Trend Means1. Market Sentiment Softens in Lump‑Sum Channels
- Some investors appear cautious about deploying large sums at once, especially in sectors showing volatility or valuation concerns.
- Year‑on‑year data also shows a noticeable drop in december inflows compared with the same month last year, pointing to evolving investor behaviour.
- Record SIP flows reflect strong retail confidence and a shift toward long‑term, disciplined investing strategies.
- This trend helps stabilise equity markets by creating steady fund inflows even when one‑time inflows fluctuate.
- While equity inflows slowed slightly, categories like flexi‑cap and multi‑asset funds continued to attract interest, indicating more selective allocation by investors.
- Rupee cost averaging
- Exposure across market cycles
- Lower emotional bias in investing