By:- Sadiya Khan, Chief Investment & Solutions Officer, Mirae Asset Sharekhan

Assets under management (AUM) of the mutual fund industry declined by 5.1% to ₹82.64 lakh crore in Sep-26 from ₹87.08 lakh crore in Aug-26. The industry recorded net outflows of ₹1.33 lakh crore, compared to net inflows of ₹41,354 crore in the previous month. The decline was primarily driven by sharp outflows from debt schemes of ₹1.83 lakh crore compared to nominal outflow of ₹8,127 crore in last month.

Inflows into equities continued to hold strong in September increasing by 1.65% during the month to ₹74,832 crore. Importantly, outflows reduced by 18% during the month resulting in a 31% increase in positive net inflow in this asset class at ₹38,307 crore. The trend was also reflected in equity ETFs that saw a 23% increase in the month. Meanwhile, gold and silver ETFs saw a strong allocation in September witnessing month-on-month increase in inflow by 40% and 81% respectively.

While global uncertainties, elevated oil prices, rising bond yields and FII selling weighed on market sentiment during the month, continued retail participation in equity schemes indicates that investors are largely using market corrections as an opportunity to accumulate long-term equity exposure.