Investors’ enthusiasm in mutual funds decreased! Equity MF falls by 22% in August 2025, SIP also declines

Mutual Fund: The Indian mutual fund industry has seen a major change in August 2025. According to the latest data released by the Association of Mutual Funds of India (AMFI), investment in equity mutual funds has declined by 22 per cent. In July, the figure was Rs 42,702 crore, which declined to Rs 33,430 crore in August. In August 2024 last year, the investment was Rs 38,239 crore, with a decline this year.

This decline reflects the increasing uncertainty in the minds of investors, which may be due to market fluctuations and economic conditions. Looking at various categories, the flexi-cap funds made the highest investment of Rs 7,679 crore. This was followed by a net investment of Rs 5,330 crore in mid-cap funds and Rs 4,992.90 crore in small-cap funds. The small-cap figure in July was Rs 6,484.43 crore, which saw a decline. Large-cap funds made an investment of Rs 2,834.88 crore, which is more than Rs 2,125.09 crore in July. Sectoral and themetic funds invested Rs 3,893 crore.

However, there are some positive things. Investments in ELSS or tax-saving funds increased for the first time in four months, with net investment of Rs 59.15 crore. In contrast, Rs 174 crore was withdrawn from dividend yield funds.

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The total assets (AUMs) of the Mutual Fund Industry in August were Rs 75,18,702.50 crore, which is a slight less than Rs 75,35,970.68 crore in July. The number of folio increased to 24,89,09,424, which was 24,57,24,339 in July.

Talking about SIP, the contribution in August was Rs 28,265 crore, which is slightly less than Rs 28,464 crore in July. The SIP AUM is Rs 15,18,368 crore, which is 20.2 percent of the total mutual fund industry. The number of SIP accounts contributing is 8,98,70,085, which is slightly less than the previous month. These figures suggest that investors are currently taking precautions, but the increase in categories like ELSS can improve the trend later. Inspectors should review their strategies in view of this AMFI report.