Indian mutual funds recorded net inflows of ₹33,430 crore into equity schemes in August 2025, according to AMFI data, signaling sustained investor confidence. Sectoral and thematic funds garnered the highest traction, driven by targeted investment strategies and market optimism. Small-cap fund flows moderated following SEBI scrutiny, reflecting cautious investor positioning amid regulatory oversight. Analysts noted that the inflows highlight continued retail and institutional participation, with a preference for diversified equity exposure and growth-oriented themes, underscoring resilience in India’s mutual fund industry despite market fluctuations.