Indian mutual funds saw ₹1.02 lakh crore exit in September 2025, mostly from liquid funds, due to liquidity and tax needs.

Indian debt mutual funds saw a sharp outflow of ₹1.02 lakh crore in September 2025, driven by institutional withdrawals from liquid and money market funds amid quarter-end liquidity needs and tax payments. Of 16 categories, 12 recorded net outflows, with liquid funds leading at ₹66,042 crore. Assets under management dropped nearly 5% to ₹17.8 lakh crore. Short-duration funds saw modest outflows, while overnight and some longer-duration funds had small inflows. Equity funds attracted ₹30,421 crore in inflows, down from August, as investors remained cautious amid market volatility and global uncertainties.