September 2025 witnessed strong investor enthusiasm in the equity mutual fund segment, with several top-performing funds attracting massive inflows. According to data from ACE MF, seven equity mutual funds received over ₹1,500 crore in inflows during the month, reflecting continued confidence among investors despite market volatility. These funds come from a mix of flexi-cap, balanced advantage, hybrid, and value categories. If you are an investor looking to understand where big money is flowing and why, here’s a detailed look at these mutual funds, their performance, and what makes them stand out.
What Are Mutual Funds?
A mutual fund pools money from multiple investors and invests it in a diversified portfolio of stocks, bonds, or other securities. Each investor owns units representing their share in the fund’s holdings. Mutual funds are professionally managed and provide diversification, liquidity, and ease of investment for retail investors.
List of 7 Mutual Funds That Attracted Over ₹1,500 Crore Inflows in September 2025
| Mutual Fund Name | Category | Inflow (₹ Crore) | AUM (as of Sep 2025) |
|---|---|---|---|
| Parag Parikh Flexi Cap Fund | Flexi Cap | 4,683 | 1.19 Lakh Cr |
| HDFC Flexi Cap Fund | Flexi Cap | 3,623 | 85,559 Cr |
| HDFC Balanced Advantage Fund | Balanced Advantage | 1,961 | 1.01 Lakh Cr |
| Invesco India Arbitrage Fund | Arbitrage | 1,873 | 27,022 Cr |
| SBI Equity Hybrid Fund | Hybrid | 1,752 | 77,255 Cr |
| HDFC Mid Cap Fund | Mid Cap | 1,500+ | 84,854 Cr |
| ICICI Prudential Value Fund | Value | 1,694 | 55,444 Cr |
Deeep Dive into 7 Mutual Funds That Attracted Over ₹1,500 Crore Inflows in September 2025
Let’s deep dive into each of these mutual funds.
#1 – Parag Parikh Flexi Cap Fund
Investment Objective:
This fund aims to generate long-term capital appreciation by investing in a diversified portfolio of domestic and international equities across market capitalisations.
Inflows in September 2025:
₹4,683 crore, taking its total AUM to ₹1.19 lakh crore.
Performance Metrics:
- 3-year annualised return: ~22.8%
- 5-year annualised return: ~22.5%
- 10-year annualised return: ~18.8%
Risk Ratios:
- Standard Deviation: 8.7% Vs Category avg of 11.58 (Indicating low volatality)
- Sharpe Ratio: 1.65 Vs 0.91 Category average (indicating better risk adjusted returns)
- Beta: 0.88 (< 1 is low volatility)
Why to Invest:
- Consistent long-term performer across market cycles.
- Balanced exposure to Indian and global equities.
- Suitable for investors seeking wealth creation with moderate risk.
Risk Factors:
- Exposure to global equities adds currency risk.
- Moderate volatility during global market corrections.
This fund is among the 13 Wealth Builder Mutual Funds with 5 Star Rating from ValueResearch to invest in 2025.
#2 – HDFC Flexi Cap Fund
Investment Objective:
Seeks to generate long-term capital appreciation by investing across large-cap, mid-cap, and small-cap stocks without any market cap bias.
Inflows in September 2025:
₹3,623 crore.
Performance Metrics:
- 3-year annualised return: ~25.0%
- 5-year annualised return: ~29.7%
- 10-year annualised return: ~17.0%
Risk Ratios:
- Standard Deviation: 9.6% Vs Category avg of 11.58 (Indicating low volatality)
- Sharpe Ratio: 1.6Vs 0.91 Category average (indicating better risk adjusted returns)
- Beta: 0.79 (< 1 is low volatility)
Why to Invest:
- Proven long-term performance under active management.
- Balanced exposure across sectors.
- Suitable for investors seeking moderate to high growth.
Risk Factors:
- May face short-term underperformance during sector rotation.
- Higher risk compared to pure large-cap funds.
#3 – HDFC Balanced Advantage Fund
Investment Objective:
Aims to provide long-term capital appreciation and income generation by investing in a mix of equity and debt instruments.
Inflows in September 2025:
₹1,961 crore.
Performance Metrics:
- 3-year annualised return: 20.4%
- 5-year annualised return: 25.0%
- 10-year annualised return: 15.5%
Risk Ratios:
- Standard Deviation: 7.9 Vs Category avg of 6.9 (Indicating HIGH volatality)
- Sharpe Ratio: 1.55 Vs 0.91 Category average (indicating better risk adjusted returns)
- Beta: 1 (volatality inline with benchmark)
Why to Invest:
- Dynamic asset allocation helps balance risk and return.
- Good option for conservative investors.
- Tax-efficient due to equity orientation.
Risk Factors:
- Returns may lag in pure bull markets.
- Performance depends on asset allocation calls.
Do you know that this fund is among 10 Hybrid Mutual Funds That Outperformed with 290% to 420% Absolute Returns in 10 Years.
#4 – Invesco India Arbitrage Fund
Investment Objective:
Aims to generate low-risk returns through arbitrage opportunities between cash and derivative markets.
Inflows in September 2025:
₹1,873 crore.
Performance Metrics:
- 3-year annualised return: 7.8%
- 5-year annualised return: 6.5%
- 10-year annualised return: 6.5%
Risk Ratios:
- Standard Deviation: 0.84 Vs Category avg of 0.84 (Indicating inline volatality)
- Sharpe Ratio: 1.35 Vs 0.94 Category average (indicating better risk adjusted returns)
- Beta: 0.5 (low volatility compared to benchmark)
Why to Invest:
- Suitable for short-term investors looking for stable returns.
- Ideal alternative to liquid funds for conservative investors.
Risk Factors:
- Limited upside potential.
- Lower post-tax returns in short holding periods.
#5 – SBI Equity Hybrid Fund
Investment Objective:
Aims to generate capital appreciation and income by investing in a mix of equity and debt instruments.
Inflows in September 2025:
₹1,752 crore.
Performance Metrics:
- 3-year annualised return: 15.6%
- 5-year annualised return: 17.4%
- 10-year annualised return: 13.3%
Risk Ratios:
- Standard Deviation: 7.62 Vs Category avg of 8.45 (Low volatality)
- Sharpe Ratio: 0.97 Vs 0.93 Category average (indicating better risk adjusted returns)
- Beta: 0.77 (low volatility compared to benchmark)
Why to Invest:
- Balanced risk-return profile.
- Consistent performance with downside protection.
- Suitable for medium-term goals.
Risk Factors:
- Sensitive to equity market fluctuations.
- Returns may moderate in rising interest rate environments.
#6 – HDFC Mid Cap Fund
Investment Objective:
Aims to provide long-term capital appreciation by investing primarily in mid-cap companies with growth potential.
Inflows in September 2025:
Over ₹1,500 crore; AUM rose to ₹84,854 crore.
Performance Metrics:
- 3-year annualised return: 27.1%
- 5-year annualised return: 30.3%
- 10-year annualised return: 18.9%
Risk Ratios:
- Standard Deviation: 12.58 Vs Category avg of 13.25 (Low volatality)
- Sharpe Ratio: 1.41 Vs 1.05 Category average (indicating better risk adjusted returns)
- Beta: 0.86 (low volatility compared to benchmark)
Why to Invest:
- Strong potential for superior returns over long-term horizons.
- Managed by experienced fund managers.
- Suitable for investors with high risk appetite.
Risk Factors:
- Higher volatility compared to large-cap funds.
- Market corrections can impact mid-cap valuations.
This is a consistent performer where this mutual fund scheme turned ₹ 1 Lakh to ₹ 11.7 Lakhs in 15 years.
#7 – ICICI Prudential Value Fund
Investment Objective:
Seeks to generate long-term wealth by investing in undervalued stocks following a value investing approach.
Inflows in September 2025:
₹1,694 crore; AUM rose to ₹55,444 crore.
Performance Metrics:
- 3-year annualised return: 23.4%
- 5-year annualised return: 26.8%
- 10-year annualised return: 16.2%
Risk Ratios:
- Standard Deviation: 9.04 Vs Category avg of 11.87 (Low volatality)
- Sharpe Ratio: 1.62 Vs 1.13 Category average (indicating better risk adjusted returns)
- Beta: 0.74 (low volatility compared to benchmark)
Why to Invest:
- Value investing approach provides good entry opportunities.
- Potential for high alpha generation in the long run.
Risk Factors:
- May underperform during momentum or growth phases.
- Requires longer holding period for returns to realise.
Earlier we discussed this fund at 6 Best Value Mutual Funds That Outperformed with 218% to 244% Returns in 5 Years.
Conclusion
The surge in inflows across these seven mutual funds indicates strong investor confidence in diversified and well-managed schemes. However, investors should note that large inflows do not automatically guarantee future returns. The data highlights where institutional and retail confidence lies — in flexi-cap, balanced, hybrid, and value segments.
If you are planning to invest, evaluate each fund’s objective, risk profile, and suitability for your goals. Use inflow trends as a guide to understand market sentiment, but make your investment decisions based on long-term fundamentals rather than short-term popularity.
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