Equity markets showed a solid rebound in November as mutual fund inflows rose sharply after a few softer months. Net inflows into equity mutual funds increased to ₹29,911 crore in November, which is a 21.2% jump from ₹24,690 crore recorded in October. This marked the strongest inflow in three months and signaled renewed investor confidence. The rise came at a time when market conditions were becoming more stable, supported by better corporate earnings and improved economic indicators.
Systematic Investment Plans (SIPs) continued to be a major source of stability for the equity market. Monthly SIP contributions in November were ₹29,445 crore, only slightly lower than the record high set in October. Despite global uncertainties, SIP flows remained consistent, highlighting strong long-term commitment from retail investors. These steady SIP inflows helped reduce market volatility and acted as a cushion against foreign investor selling that took place throughout the year.
Mutual fund inflows in November were not limited to a single segment. Almost all equity categories saw positive inflows, reflecting widespread investor interest. Large-cap funds attracted ₹1,640 crore, a sharp 68.7% rise compared with the previous month. Mid-cap funds recorded inflows of ₹4,487 crore, while small-cap funds received ₹4,407 crore.
Multi-cap and large-and-mid-cap funds also witnessed increased investments. This pattern showed that investors preferred a balanced approach, spreading money across different market sizes to benefit from growth opportunities while managing risk.
The rise in mutual fund inflows contributed to a stronger equity market performance in November. Benchmark indices, including the Nifty 50, moved higher during the month. The Nifty 50 rose by around 2%, supported by steady domestic demand and improved earnings visibility. The combination of better company results and strong investor flows helped markets recover from the volatility seen earlier in 2025.
Corporate earnings for the quarter were better than expected for several major companies, especially in banking, manufacturing and technology. With earnings improving and inflation easing, overall market sentiment became more positive.
The overall mutual fund industry’s Assets Under Management (AUM) grew significantly in November. Total AUM crossed ₹80 lakh crore, reaching nearly ₹80.8 trillion. Equity AUM also increased due to the combination of rising markets and robust inflows.
Gross sales in the equity category improved as well, coming in at around ₹64,000 crore for the month. This was a clear improvement from October and showed renewed enthusiasm among investors and distributors.
Several economic and market conditions helped drive the strong inflows in November. Inflation continued to ease compared with earlier months, which helped support a stable interest rate environment. This stability allowed investors to shift more money toward equities, expecting better returns in the medium to long term.
Corporate earnings upgrades also played a key role. Many companies reported stronger profit growth, indicating that business momentum was improving. Analysts noted that earnings resilience, combined with steady SIP inflows, created a strong foundation for equity investments.
While domestic inflows were strong, foreign portfolio investors (FPIs) continued to show caution. The year saw several months of foreign outflows due to global uncertainties and shifting interest rate expectations. However, the heavy domestic inflows through SIPs and mutual funds helped offset the impact of these foreign withdrawals.
Domestic inflows remained the dominant force in supporting market liquidity. This shift showed the rising influence of Indian retail and domestic institutional investors in shaping market trends.
November also witnessed a clear shift in fund manager strategies. Large-and-mid-cap funds, multi-cap schemes and diversified equity funds saw increased allocations. Fund managers looked for opportunities that balanced growth potential with reasonable valuations.
Small-cap flows remained positive but more selective, as valuations in this segment were considered high. Investors and fund managers focused on quality stocks within the small-cap universe rather than broad-based buying.
Hybrid funds and exchange-traded funds (ETFs) also attracted higher attention, indicating an interest in combining equity exposure with risk management.
The rise in equity inflows has improved the near-term outlook for Indian markets. Higher monthly inflows boost liquidity, support valuations and encourage further participation. Continuing SIP contributions offer a steady and predictable source of buying, which helps cushion any market corrections.
However, the market still needs to watch global conditions, foreign investor actions and potential policy changes. External factors such as global interest rate movements and geopolitical tensions can influence future flows and market direction.
Despite these uncertainties, domestic flows remain a strong pillar of support. Fund managers emphasised the importance of careful stock selection and risk management, especially in segments where valuations have risen sharply.
November 2025 marked a strong turnaround for equity mutual fund flows in India. The sharp rise to ₹29,911 crore in net inflows, combined with nearly ₹29,445 crore in SIP contributions, demonstrated renewed investor confidence. Broad-based inflows across categories, improving corporate earnings and stable economic conditions helped markets rebound.
Domestic investors, especially those investing through SIPs, played a crucial role in sustaining the market despite foreign outflows. With total AUM crossing ₹80 lakh crore, the mutual fund industry continued its growth trajectory. The month highlighted the increasing strength of domestic participation and its ability to influence market momentum in a meaningful way.