In October 2025, Indian equity mutual funds achieved returns of up to 9%, outpacing benchmark indices whose gains were more modest. The outperformance was largely driven by sectoral and thematic funds, which led the rally, while some funds lagged. Despite the strong month, analysts caution on sustainability given global policy uncertainty and elevated valuations. Investors are weighing inflows, exit levels and whether fund houses will broaden sector exposure beyond high-flying themes.