Systematic Investment Plan investments in mutual funds reached a new record in December 2025, with inflows of approximately Rs 31,000 crore. Lump-sum investments declined to around Rs 8,000 crore during the month, about 19 percent lower than the previous month. Combined net inflows into active equity funds stood at approximately Rs 39,000 crore in December.
The data indicates that investors continued to prioritise regular SIP investments despite market volatility, a trend described as a positive signal for the mutual fund industry.
Equity market performance during December remained subdued. The Nifty 50 declined by around 0.3 percent, while midcap and smallcap stocks also remained under pressure. As a result, assets under management of active equity funds increased marginally by 0.4 percent month-on-month to Rs 44.6 lakh crore.
So far in FY26, cumulative net inflows into active equity funds have reached Rs 3.3 lakh crore, equivalent to about 9 percent of AUM at the start of the financial year.
In December, large-cap and midcap funds accounted for roughly one-fourth of total active equity fund inflows. Flexi-cap funds also saw a notable share of investments, while inflows into small-cap and thematic funds remained limited.
Seven new active equity fund offers were launched during the month, mobilising about Rs 38,700 crore. Investments into existing schemes declined slightly compared with the previous month.
Investments into passive funds, including exchange-traded funds and index funds, increased sharply in December, with net inflows of approximately Rs 26,700 crore, about 74 percent higher month-on-month. Inflows into gold funds and overseas funds rose up to threefold, while investments through new passive fund offers declined.
In contrast, debt and liquid funds witnessed significant outflows. Debt funds saw net withdrawals of around Rs 44,900 crore, while liquid funds recorded outflows of approximately Rs 87,500 crore during the month.
According to Nuvama Institutional Equities, market volatility remains elevated and investors should remain cautious. The brokerage noted that the continued rise in SIP investments is a constructive indicator for the mutual fund industry. Nuvama expressed confidence in the sector and identified HDFC AMC, Nippon AMC and KFIN Technologies as preferred stocks, citing their positioning in mutual fund administration and technology services.
