Equity MF Inflows Plunge 40% From Peak Amid Market Grind, Investor Fatigue Sets In

• Equity mutual fund inflows dropped nearly 40% from July 2025 peak to Rs 24,028 crore, down from Rs 42,702 crore.
• The decline is attributed to investor fatigue from range-bound markets, muted returns, and fewer new fund offers, not a loss of faith in equities.
• Despite moderation in lump-sum investments, SIP contributions remained steady, rising to over Rs 31,000 crore, showing continued retail participation.
• Investors increased allocations to gold ETFs, with inflows reaching Rs 24,040 crore, nearly matching equity flows in January 2026, for diversification.
• Experts emphasize that equities remain central for long-term wealth creation, with gold serving as a diversification tool rather than a substitute.