Mutual Funds

Debt mutual funds in India witnessed a significant surge in investor interest in October, attracting net inflows of Rs 1.6 lakh crore, reflecting heightened confidence in fixed-income instruments amid a volatile macroeconomic environment. The inflows were primarily driven by retail and institutional investors seeking stable returns against the backdrop of inflationary pressures, fluctuating bond yields, and cautious equity market sentiment.

Wealth Company Mutual Fund has announced the launch of a new specialized investment fund, targeting high-net-worth individuals and retail investors seeking tailored portfolio solutions. The fund aims to combine strategic asset allocation, risk-adjusted returns, and sector-focused opportunities to deliver consistent long-term growth. This launch reflects the growing demand for customized investment vehicles in India’s expanding mutual fund landscape, driven by investor sophistication and an appetite for diversified wealth creation.

The Securities and Exchange Board of India (SEBI) has initiated a detailed review of regulations governing mutual funds and stockbrokers, aiming to modernize compliance standards and strengthen investor safeguards in an increasingly dynamic marketplace. The reforms under consideration focus on improving transparency, rationalizing operational processes, and tightening oversight of intermediaries. SEBI’s review comes amid rapid growth in retail participation and digital-first investing, prompting the regulator to reassess long-standing norms to ensure they remain relevant.

India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has introduced significant changes to the way mutual funds can participate in companies preparing to go public. Mutual fund schemes are now barred from investing in pre-IPO placements, a move aimed at reducing liquidity risks and ensuring schemes hold only securities that are listed or slated for listing. While curbing this route, SEBI has simultaneously expanded the anchor investor framework, broadening institutional participation and raising the anchor allocation limit.

The Securities and Exchange Board of India (Sebi) has granted additional time for stakeholders to submit comments on its proposed changes to the mutual fund regulatory framework. The extension aims to ensure that asset management companies, distributors, investors, and industry bodies can provide comprehensive feedback on rules designed to strengthen transparency, reduce systemic risk, and enhance investor protection. The proposals cover areas such as governance standards, risk management practices, disclosure requirements, and operational processes across the industry.

After months of strong inflows, mutual fund (MF) investments into equity schemes slowed in October, totaling Rs 24,690 crore — a noticeable dip from September’s Rs 26,686 crore. The decline reflects investor caution amid heightened market volatility, profit-booking, and shifting sentiment toward hybrid and debt instruments. Despite the moderation, systematic investment plans (SIPs) continued to show resilience, suggesting that long-term retail participation remains intact.

India’s business landscape is undergoing dynamic shifts as key sectors respond to global headwinds, domestic policy changes and evolving investor sentiment. Mutual funds saw equity inflows decelerate by 19 % to Rs. 24,690 crore in October, reflecting cautious optimism among retail and institutional investors. Concurrently, India’s mobile exports achieved a record $2.4 billion in October, bolstering the manufacturing narrative. Meanwhile, the insurance sector is poised for deeper penetration with relaxation of GST rates and regulatory reforms.

In a significant development ahead of its much-anticipated public offering, Lenskart has secured investment from SBI Mutual Fund in its pre-IPO funding round. The eyewear giant, valued at over USD 5 billion, continues to attract strong institutional interest as it prepares for a market debut expected in 2025. The investment by SBI MF—India’s largest mutual fund house—underscores growing investor confidence in Lenskart’s scalable business model, robust profitability trajectory, and global expansion plans.

Tata Mutual Fund has reopened subscriptions for its Silver Exchange-Traded Fund (ETF), offering investors renewed access to commodity-linked investment opportunities. The move follows robust demand and market conditions that favor silver as a strategic portfolio diversification tool. Analysts note that ETFs provide a cost-effective and liquid avenue for investors to gain exposure to precious metals without physical ownership. With rising interest in alternative assets amid global economic uncertainties, Tata MF’s Silver ETF is poised to attract both retail and institutional investors.

India's debt mutual funds experienced unprecedented net outflows of ₹1.02 lakh crore in September 2025, a significant increase from ₹7,980 crore in August. This surge was primarily driven by large institutional withdrawals from liquid and money market funds, reflecting seasonal liquidity adjustments and advance tax-related outflows. The substantial redemptions led to a nearly 5% decline in the assets under management (AUM) of fixed-income funds, dropping to ₹17.8 lakh crore from ₹18.71 lakh crore at the end of August.