December Sees Massive ₹1.32 Lakh Crore Outflow from Debt Mutual Funds, SIP Investments Hit Record

December brought a mixed picture for India’s mutual fund industry. While equity mutual fund investments fell, Systematic Investment Plan (SIP) inflows reached an all-time high, reflecting continued investor confidence.

Equity Mutual Fund Investments Drop

New Delhi: Volatility in the stock market led to a 6% decline in equity mutual fund inflows in December, which totaled ₹28,054 crore. Despite this, retail investors set a new record through SIPs, contributing ₹31,000 crore, up from ₹29,445 crore in November. According to AMFI data, the industry’s total assets under management (AUM) fell from ₹80.80 lakh crore in November to ₹80.23 lakh crore in December, primarily due to large-scale withdrawals from debt schemes.

SIP Investments Continue to Shine

Anand Rathi Wealth’s Joint CEO, Firoz Aziz, noted that SIP investments for the year 2025 totaled ₹3.34 lakh crore, signaling that investors continue to prefer steady, long-term investment routes over market timing.

Gold ETFs See Heavy Inflows

Gold remained a strong performer, attracting ₹11,647 crore in December, compared to just ₹3,742 crore in November. In 2025, gold delivered more than 70% returns, making it an attractive alternative for investors.

Debt Mutual Funds Bear the Brunt

Debt mutual funds witnessed a massive outflow of ₹1.32 lakh crore in December. Experts suggest that such withdrawals at the year-end are common, as companies pull funds to pay taxes and meet other business requirements.

Conclusion

While the equity market showed some weakness, the strong SIP inflows and gold investments highlight that investors are continuing to pursue long-term wealth creation strategies, despite short-term market fluctuations.