Indian Investors Diversify Portfolios in 2025

“Equity-oriented schemes continued to drive growth, supported by sustained inflows. Hybrid and passive funds also saw healthy traction, with multi-asset and arbitrage funds together accounting for over 70% of hybrid category flows. As the industry expands, AMFI remains committed to strengthening investor awareness and ensuring a transparent, diversified, and accessible investment ecosystem.”

“There has been a quantum shift in the way India saves and the Choti SIP will help widen the reach.”

“Category-wise flows indicate a continued tilt toward growth-oriented and diversified mandates, with schemes that offer flexibility across market capitalisations—such as Multicap, Large & Midcap, and Flexicap funds — attracting sizeable inflows as investors sought exposure to multiple pockets of the market.”

“Investors continued to favour mid-cap and small-cap funds, both of which recorded robust inflows supported by strong trailing returns, broad earnings delivery, and the perception of superior long-term compounding potential in these higher-growth segments. Intermittent corrections in these pockets also provided attractive entry points.”

“With one-year returns across equity categories moderating, inflows now appear more balanced and less sentiment-driven.”

“The headline outflow is driven almost entirely by Overnight (–₹37,130 crore) and Liquid Funds (–₹11,293 crore). In contrast, investors allocated meaningfully to higher-yielding but low-volatility segments such as Money Market (+₹12,822 crore), Ultra Short Duration (+₹9,068 crore) and Low Duration Funds (+₹5,800 crore). These categories offer stable carry without material duration risk, making them attractive amid uncertainty over the rate path. In addition, this could also mean some rotation and positioning ahead of the MPC policy review in early December.”

“Investors have continued to show faith in equity despite the volatility in the markets.”