After a sharp 22% decline in May, equity mutual fund inflows showed a 24% rise in June, coming in at Rs 23,587 crore, according to monthly data released by the Association of Mutual Funds in India (AMFI) on July 9. Market benchmarks remained largely stable and investor sentiment appeared to reflect this optimism. During the month of June, Nifty gained 2.7 percent, while the Sensex gained 3.1 percent despite continued uncertainty amidst global trade tensions and geopolitical conflicts in the Middle East.
On the back of mark-to-market (MTM) gains in equities, the overall net assets under management (AUM) of the mutual fund industry rose to an time high of Rs 74.41 lakh crore as against Rs 72.20 lakh crore in May and Rs 69.99 lakh crore in April. New Fund Offers (NFOs) saw inflows of Rs 1,986 crore, less than half of Rs 4,170 crore in May, a 52% decline.
Total mutual fund folios reached 24.13 crore as of June 2025. Within this, retail mutual fund folios across equity, hybrid, and solution-oriented schemes rose to 19.07 crore in June, from 18.84 crore in May. Retail AUM across these schemes stood at Rs 43.99 lakh crore in June 2025, compared to Rs 42.2 lakh crore in May.
Venkat Chalasani, Chief Executive of AMFI noted that they are confident that their emphasis on establishing a robust mutual fund framework, coupled with standardized disclosure protocols and ongoing investor education initiatives, will propel the industry's growth and success. "While market volatility has made some investors cautious, we’re also witnessing a healthy shift towards hybrid and arbitrage funds a trend that shows maturing investor behaviour and a preference for balanced risk strategies in uncertain times," he said.
Equity funds
In the Equity categry, large cap funds led gains with inflows of Rs 1,694 crore in June, rising 35% from Rs 1,250.5 crore in the previous month. Small Cap Funds led gains in open-ended schemes with inflows of Rs 4,024.5 crore, up 25% from Rs 3,214 crore in May. Mid Cap Funds also recorded inflows of Rs 3,754 crore, marking a 34% increase from Rs 2,808.7 crore month-on-month.
Naval Kagalwala, COO & Product Head at Shriram Wealth Ltd noted that during the month, two-thirds (65.7%) of this growth comes from Equity & Hybrid schemes representing a growing interest for investing in Indian equity. This should help build long-term wealth for investors. "However, 25% of the monthly growth is in Mid, Small & Sectoral / Thematic schemes, which are relatively higher risk. We suggest investors to diversify and allocate across categories and asset classes, in line with their risk profile," he said.
On the other hand, sectoral/thematic Funds garnered inflows of Rs 475.61 crore, falling 77% from Rs 2,052.5 crore in May. ELSS Funds experienced outflows of Rs 556 crore, down 18% from Rs 678 crore outflows in the previous month. Dividend Yield Funds posted inflows of Rs 45.55 crore, reversing from an outflow of Rs 20.82 crore in May.
ETFs and Hybrids
Gold ETFs saw inflows jump to Rs 2,080.9 crore, rising over sixfold from Rs 292 crore in May, a 613% surge. Other ETFs recorded inflows of Rs 844.43 crore, plunging 79% from Rs 4,086.8 crore in the previous month.
Inflows into hybrid funds rose to Rs 23,223 from Rs 20,765 crore in May. Arbitrage funds saw the second highest inflows across categories at Rs 15,584 crore around 0.7 percent lower than 15,702 crore in May 2025.
Debt Funds
Open-ended income/debt-oriented mutual funds saw net outflows of Rs 1,711 crore, a 89 percent month on month increase from Rs 15,908 crore in May. Liquid Funds continued to see heavy outflows at Rs 25,196 crore, though down 37% from May’s Rs 40,205 crore. Overnight Funds also remained negative with Rs 8,154 crore outflows, flat month-on-month. Shorter-duration categories saw strong inflows. Ultra Short Duration Funds rose 59% to Rs 2,944 crore, while Low Duration Funds were steady at Rs 3,136 crore.
Short Duration Funds jumped 474% to Rs 10,277 crore from Rs 1,790 crore. Money Market Funds collected Rs 9,484 crore, down 15% from May. Corporate Bond Funds saw inflows of Rs 7,124 crore, 41% lower than May’s Rs 11,983 crore. Long-term categories saw reversals. Long Duration Funds posted outflows of Rs 446 crore after Rs 466 crore inflows in May. Medium to Long Duration Funds too turned negative at Rs 66 crore. Gilt Funds saw Rs 957 crore in redemptions; Floater Funds rebounded with Rs 231 crore inflow versus Rs 254 crore outflow earlier.
SIP flows
Mutual fund inflows through the Systematic Investment Plan (SIP) route rose to a new high of Rs 27,269 crore in June 2025, highlighting retail investors' growing discipline and resilience despite market volatility. This marked a 2.2 percent increase from the inflow od Rs 26,688 crore seen in May, and a 5.2 percent rise over March levels.
The number of contributing SIP accounts increased from 8.56 crore to 8.64 crore in June, and SIP assets under management rose to Rs 15.31 lakh crore, with SIPs accounting for 20.6 percent of the mutual fund industry’s total assets, up from 20.2 percent in May.
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