Equity MF Inflows Decline as Investors Shift to Gold and Silver ETFs

Equity mutual fund inflows in India fell 9% in September to ₹30,422 crore ($3.7 billion), down from ₹33,430 crore in August, as investors grew cautious amid rising US trade tariff concerns. The shift highlights a broader risk-off sentiment in traditional markets.

Gold and silver exchange-traded funds (ETFs) saw record-breaking inflows, with Gold attracting ₹8,363 crore and silver drawing ₹5,341 crore—the highest ever for both categories. This surge comes despite global physical bullion shortages, as reported by the Association of Mutual Funds in India (AMFI). Kotak Mutual Fund has temporarily halted inflows into its Silver Fund of Funds due to market premiums caused by scarcity.

Flexi-cap equity funds led inflows at ₹7,029 crore, while mid- and small-cap funds garnered ₹5,085 crore and ₹4,363 crore, respectively. Hybrid fund investments dropped sharply to ₹9,398 crore from ₹15,294 crore, signaling a reallocation toward safer assets.