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MF : Lower inflows attributed to sharp run-up in the market along with festive season

ICICIdirect Research 14 Nov 2025 DISCLAIMER

Inflows (including NFOs) in the month of October came further lower at Rs 25000 crore as compared to Rs 30000 crore in Sep 2025. Ex-NFOs, inflows were significantly lower at Rs 20500 crore as against Rs 30000 crore in September 2025 (NFOs in October was higher at Rs 4000 crore).
Lower inflow in October can be attributed to sharp run-up in the markets (5% up MoM) along with the festive season. Historically flows have moderated for 1-2 months during festive season. Once the market stabilizes or falls, the inflow improves (as investors shy away when the market rises sharply).
Importantly, the trend of higher gross purchases continues with Oct 2025 witnessing inflows of Rs 59400 crore as compared to the current year’s (CY2025) average of Rs 58700 crore. Redemptions sometimes may higher due to specific goal-based requirements or profit booking. Higher gross purchases indicate that the structural gross inflows remain intact.  
SIP inflows continue to rise at Rs 29529 crore vs Rs 29361.
Except Flexicap funds (7200 vs 7000), all categories of funds saw lower inflows including Midcap funds where inflows were at Rs 3800 vs 5100 crores and Smallcap which saw inflows at Rs 3500 vs 4400 crores.

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