Net Inflow in Equity MFs in June Up by 24% at Rs 23,587 Crore

New Delhi, July 9, 2025: India’s equity mutual fund segment experienced a strong comeback in June, with net inflows jumping by 24% to ₹23,587 crore, according to data released by the Association of Mutual Funds in India (AMFI). This marks a significant reversal after five consecutive months of declining inflows.

Equity Inflows Rebound After Prolonged Slump

June’s net inflows surged from ₹19,013 crore in May, marking the first month-on-month rise since December 2024. Inflows had been on a consistent downward trend from ₹41,156 crore in December to ₹24,269 crore in April, indicating a period of investor caution. Despite this recent volatility, June marked the 52nd consecutive month of net positive inflows into equity mutual funds, highlighting sustained long-term investor confidence.

Historical Net Equity Inflows (₹ crore):

• December 2024: ₹41,156
• January 2025: ₹39,688
• February 2025: ₹29,303
• March 2025: ₹25,082
• April 2025: ₹24,269
• May 2025: ₹19,013
• June 2025: ₹23,587

Flexi Cap, Small Cap, and Mid Cap Funds Lead the Surge

Among the various categories of equity funds, Flexi Cap Funds attracted the most attention, drawing in ₹5,733 crore in net inflows. This was followed by strong interest in:

• Small Cap Funds: ₹4,024 crore
• Mid Cap Funds: ₹3,754 crore
• Large Cap Funds: ₹1,694 crore

However, Equity Linked Savings Schemes (ELSS), which are tax-saving mutual funds, were the only segment to witness net outflows, totalling ₹556 crore in June. This marks the third consecutive month of outflows from ELSS funds, possibly reflecting a shift in investor preferences or tax planning strategies.

Debt Funds Remain Under Pressure

In contrast to the equity market’s recovery, debt-oriented mutual funds continued to face challenges, recording net outflows of ₹1,711 crore in June. While this is a significant improvement from May’s much larger outflows of ₹15,908 crore, the segment has not yet regained the strong momentum it saw in April when it received a massive ₹2.2 lakh crore in inflows. Within debt funds, short-duration funds and money market funds saw some inflows, indicating specific pockets of interest.

Industry AUM Reaches Record High

The robust inflows across equity categories, combined with overall market appreciation, helped push the total assets under management (AUM) of the Indian mutual fund industry to a record high of ₹74.4 lakh crore as of June 2025. This is a substantial increase from ₹72.2 lakh crore at the end of May.

Overall, the mutual fund industry attracted over ₹49,000 crore in net inflows in June, a significant jump from ₹29,000 crore in May. This broad-based increase in inflows reinforces renewed investor confidence in the Indian financial markets, driven by consistent retail participation and optimism about India’s economic growth trajectory.

What’s The Future Outlook?

The sharp rebound in equity mutual fund inflows signals renewed investor confidence, especially in mid, small, and flexi cap segments, suggesting strong risk appetite. With markets near all-time highs and the AUM hitting ₹74.4 lakh crore, this momentum could continue if macroeconomic stability persists.

However, persistent ELSS outflows hint at changing tax-saving preferences, while debt fund inflows may remain subdued until interest rate clarity improves. Going forward, SIP flows, market direction, and global cues will play a vital role in sustaining this positive trend. Overall, the mutual fund industry appears poised for steady growth in FY26.

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