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Amid rapidly evolving geopolitical landscape and global headwinds, foreign institutional investors (FIIs) remained net sellers in September, according to the latest data released by Association of Mutual Funds in India (AMFI) on Monday (October 12, 2026). On the other hand, Systematic Investment Plan (SIP) participation continued to rise, with retail investment participation in September marking a record inflow of ₹32,490 crore last month. Overall SIP assets now account for 21.6% of total industry assets at Rs 17.86 lakh crore.
Despite the global challenges, tightening monetary cycle and muted returns from the domestic equity market during the month, equity mutual funds received an inflow of ₹38,306.55 crore, marking 67th consecutive month of inflows.
However, assets under management of the mutual fund industry declined by 5.1% on month to ₹82.64 lakh crore (₹82.64 trillion) in September. The decline was driven primarily from outflows in debt funds, which stood at ₹17.64 lakh crore, and on account of mark to market losses.
“The industry has added 27.13 lakh folios during this particular month, taking the total count to 28.62 crores, up by over 0.9% from 28.35 crores in August. The equity funds have remained the largest contributor, accounting for 66.7% of the total folios, with around 17.70 lakh issued during this particular month,” AMFI Chief Executive Venkat N Chalasani said.
As per the data, net outflows stood at ₹1.3 trillion in the previous month, compared to ₹41,353.60 crore in August. While FIIs remained net sellers, domestic institutional investors continued to support the domestic equity markets, with their purchase rising to ₹76,030 crores from ₹58,268 crores.
Gold Exchange Traded Funds (ETFs) continued to record an inflow with September marking ₹4,451 crores while Silver ETFs saw ₹1,974.32 crores flows for the same period as compared to ₹2,596.70 crores and ₹1,270.63 crores in August, respectively.
“External headwinds and global factors continue to weigh on investor sentiment,” Chalasani said. “Volatile crude prices, heightened inflationary concerns, rising US Treasury yields and geopolitical developments in West Asia are further contributing to the risk sentiment.”
Going forward, investors may favour short-term debt funds amid expectations of higher interest rates. Shorter-duration funds are generally less sensitive to interest rate movements than longer-duration funds, making them potentially more attractive in a rising-rate environment. Elevated US Treasury yields, alongside geopolitical tensions, volatile crude prices and inflationary concerns, could further influence global bond markets and investor sentiment.
Published – October 12, 2026 02:50 pm IST
