New Delhi, Oct. 12 -- India's mutual fund industry witnessed a sharp reversal in fund flows in September, recording a net outflow of Rs 1.33 lakh crore after attracting net inflows of Rs 41,353 crore in August, as heavy withdrawals from debt-oriented schemes outweighed sustained investments in equity funds, according to data released by the Association of Mutual Funds in India (AMFI).

The overall outflow coincided with a decline in the industry's net assets under management (AUM) to Rs 82.64 lakh crore at the end of September, compared with Rs 87.08 lakh crore in the previous month.

Debt-oriented schemes accounted for the bulk of the outflows, witnessing net withdrawals of Rs 1.83 lakh crore in September, significantly higher than the R...