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MF Flows: Inflows intact despite volatile sentiments

ICICIdirect Research 12 Sep 2025 DISCLAIMER

Last 1 year Return: Nifty 50 index is flat while Nifty Smallcap Index is -6%. Still the inflow are strong despite the market fear that inflows will drop sharply if 1-Year return is Zero or negative.
Total Inflows (including NFOs) in the month of August came in lower at Rs 33430 crore as compared to Rs 42702 crore. NFO inflows last month was Rs 9000 crore driven by sectoral fund Vs this month where NFO was just Rs 2100 crore.
Ex-NFOs, Inflows in August is 4th highest after Oct/Noc 2024 and July 2025. August inflows were at Rs 31329 crore as against Rs 33700 crore in July
Inflows were higher in Largecap (2800 vs 2100) and Sectoral (2500 vs 2000). At similar levels in Flexicap (7635 vs 7650). Only marginally lower in Smallcap (5000 vs 5400) and Midcap (4700 vs 5200), Multicap Funds (3200 vs 3800). After Flexicap (which is a flagship category), Smallcap and Midcap category continue to saw highest inflows at a run-rate of around Rs 5000 crore each.
ETFs also saw higher inflows at Rs 7200 crore vs Rs 4500 crore in July.
SIP inflows were marginally lower at Rs 28265 crore vs Rs 28464.

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