Equity mutual funds witnessed a sharp rise in investor inflows even as the overall mutual fund industry recorded substantial net outflows during the month, according to the latest September data released by the Association of Mutual Funds in India (AMFI). Net inflows into equity-oriented mutual fund schemes surged 30.61 per cent month-on-month to Rs 38,306.55 crore, compared with Rs 29,328.62 crore in the previous month. However, the mutual fund industry reported overall net outflows of Rs 1,33,375.57 crore, against net inflows of Rs 41,353.60 crore in the preceding month. The industry’s total assets under management (AUM) declined to Rs 82.64 lakh crore from Rs 87.08 lakh crore, marking a fall of approximately 5.1 per cent month-on-month. Despite strong inflows into equity schemes, their total AUM declined to Rs 37.54 lakh crore from Rs 39.21 lakh crore in the previous month, a drop of approximately 4.3 per cent. The decline in equity AUM came even as investors continued to allocate money to several equity mutual fund categories, particularly small-cap and mid-cap schemes.
Mutual funds: These 5 top schemes fell the least in September as Nifty plunged 6.1%
Quant Small Cap Fund, Bandhan Small Cap Fund and Parag Parikh Flexi Cap Fund recorded the smallest monthly NAV declines among the 25 largest equity growth schemes tracked in a report by Motilal Oswal Financial Services.
The September market correction weighed on mutual fund schemes, with all 25 of the largest equity growth schemes by assets under management (AUM) ending the month with negative NAV changes. However, some schemes recorded relatively smaller declines than their peers, according to Motilal Oswal Financial Services’ Fund Folio September data.
The Nifty declined 6.1 per cent month-on-month in September, while the mutual fund industry’s total assets under management fell 5.1 per cent to Rs 82.6 trillion from Rs 87.1 trillion in August.
Among the 25 schemes tracked in the report, Quant Small Cap Fund recorded the smallest monthly NAV decline at 1.2 per cent, followed by Bandhan Small Cap Fund at 1.5 per cent and Parag Parikh Flexi Cap Fund at 2.2 per cent.
Top 5 mutual fund schemes that fell the least in September
Mutual fund scheme September NAV change
Quant Small Cap Fund -1.2%
Bandhan Small Cap Fund -1.5%
Parag Parikh Flexi Cap Fund -2.2%
Nippon India Small Cap Fund -2.9%
HDFC Small Cap Fund -3.0%
(Source: Motilal Oswal Financial Services, Fund Folio September data 2026. The comparison covers the 25 largest equity growth schemes by AUM listed in the report)
Small cap funds feature among schemes with relatively smaller declines
Small cap funds accounted for four of the five schemes with the smallest NAV declines in the September comparison. Quant Small Cap Fund and Bandhan Small Cap Fund recorded declines of 1.2 per cent and 1.5 per cent, respectively. Nippon India Small Cap Fund and HDFC Small Cap Fund followed with declines of 2.9 per cent and 3.0 per cent.
Parag Parikh Flexi Cap Fund, a flexi cap scheme, was the only non small cap fund among the five, with its NAV declining 2.2 per cent during the month.
The figures show how the monthly NAV performance of these schemes compared with other large equity growth schemes during the market correction. However, a smaller decline over one month does not necessarily indicate better long-term performance or make a fund suitable for every investor.
How did the other large mutual fund schemes perform?
Several other schemes recorded steeper monthly declines. HDFC Mid Cap Fund’s NAV fell 7.2 per cent, while Kotak Mid Cap Fund registered a 7.6 per cent decline, the steepest among the 25 schemes listed in the report. Motilal Oswal Midcap Fund fell 7.4 per cent, and Mirae Asset Large & Midcap Fund declined 6.8 per cent.
The difference in monthly performance highlights the variation across schemes and categories during September’s market weakness.
What should investors keep in mind?
Investors should avoid choosing a mutual fund solely on the basis of its performance in a single month. Monthly NAV changes reflect short-term market movements and do not establish whether a scheme can consistently limit losses during volatile periods.
Before investing, investors should also assess a fund’s performance over longer periods, its benchmark and category performance, portfolio composition, investment objective and risk level. The September figures are historical performance data, not a guarantee of future returns or a recommendation to buy any of the schemes.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)