In June 2025, equity mutual funds in India witnessed a robust resurgence, with net inflows increasing by 24% to reach 🟢 ₹23,587 crore, compared to ₹19,013 crore in May, according to the Association of Mutual Funds in India (AMFI) Republic World+3Moneycontrol+3Moneycontrol+3Navbharat Times+9The Economic Times+9India Today+9.
🔍 Key Highlights
- Month-on-month jump: Inflows rose by ₹4,574 crore — marking a strong rebound after a dip in May Reuters.
- Industry-wide momentum: Overall, the mutual fund industry attracted ₹49,301 crore in June, showing a 67% rise from ₹29,572 crore in May Business Today+4India Today+4The Economic Times+4.
- AUM growth: Total assets under management (AUM) expanded by ~3%, reaching ~₹74.4 lakh crore as of June 30 The Economic Times+6Moneycontrol+6Moneycontrol+6.
📊 Equity Sub-Categories Breakdown
Among the 11 equity sub-categories tracked by AMFI, 10 posted inflows, while only ELSS (tax-saving) funds recorded outflows.
- Flexi‑cap funds: Led the surge with ₹5,733 crore, a 49% rise from May’s ₹3,841 crore The Economic Times+10The Economic Times+10The Economic Times+10.
- Small‑cap funds: Attracted ₹4,024 crore (+25%), up from ₹3,214 crore The Economic Times+4Moneycontrol+4India Today+4.
- Mid‑cap funds: Garnered ₹3,754 crore (+34%), compared to ₹2,809 crore in the previous month Navbharat Times+11The Economic Times+11India Today+11.
- Large‑cap funds: Saw a 35% increase, drawing ₹1,694 crore versus ₹1,250 crore in May The Economic Times+15Moneycontrol+15NDTV Profit+15.
- Sectoral/thematic funds: Slowed sharply to ₹476 crore from ₹2,052 crore in May Reuters+3Moneycontrol+3Business Today+3.
- ELSS funds: Continued outflows for the third consecutive month—₹556 crore was redeemed in June The Economic Times+5The Economic Times+5The Economic Times+5.
⚖️ Debt, Hybrid & Passive Funds: A Mixed Bag
- Debt funds: Logged net outflows of ₹1,711 crore—substantially lower than May’s ₹15,908 crore outflow NDTV Profit+3The Economic Times+3India Today+3.
- Short-duration: ₹10,276 crore inflow.
- Money-market: ₹9,484 crore inflow.
- Dynamic bond: Marginal ₹44 crore inflow.
- Liquid funds: Major withdrawals of ₹25,196 crore in June NDTV Profit+6The Economic Times+6India Today+6.
- Short-duration: ₹10,276 crore inflow.
- Hybrid funds: Came in strong with ₹23,222 crore inflows—a 12% uptick from ₹20,765 crore in May Republic World+11The Economic Times+11India Today+11.
- Arbitrage: ₹15,584 crore inflow.
- Multi-asset / balanced advantage: ₹3,209 crore + ₹1,885 crore respectively India Today+2The Economic Times+2The Economic Times+2.
- Aggressive hybrid: Rose sharply—₹1,331 crore vs ₹341 crore in May (+290%) The Economic Times+2The Economic Times+2India Today+2.
- Arbitrage: ₹15,584 crore inflow.
- Passive investments & ETFs:
- Gold ETFs: Soared with ₹2,080 crore (up 613%) Moneycontrol+3The Economic Times+3India Today+3.
- Index funds: Secured ₹1,043 crore.
- Other ETFs & international FoFs: Attracted ₹844 crore and ₹28 crore, respectively The Economic Times+2The Economic Times+2India Today+2.
- Other passive/ETF schemes: Saw a 28% dip, collecting ₹3,997 crore in June vs ₹5,525 crore in May NDTV Profit+3The Economic Times+3India Today+3.
- Gold ETFs: Soared with ₹2,080 crore (up 613%) Moneycontrol+3The Economic Times+3India Today+3.
💵 SIP Trends
Systematic Investment Plans (SIPs) showed moderate growth, with contributions rising to ₹27,269 crore in June from ₹26,688 crore in May—a 2% increase Moneycontrol+3NDTV Profit+3Financial Express+3.
📈 Market Context & Investor Sentiment
- Equity benchmarks painted a supportive backdrop: Nifty gained ~2.7% and Sensex ~3.1% in June Moneycontrol+1Moneycontrol+1.
- Mark-to-market gains further buoyed AUMs, lifting total MF assets to record highs near ₹74.4 lakh crore NDTV Profit+8Moneycontrol+8Moneycontrol+8.
- Investor appetite shifted toward flexi‑cap, small‑cap, mid‑cap and hybrid schemes, signaling a tilt toward risk-on strategies.
- ELSS remained out of favor—possibly due to tight liquidity or lack of new tax incentives.
🔮 Outlook & Implications
- Revival in risk-taking appetite: Sustained inflows into higher-beta segments and hybrids suggest that investors are comfortable with equity risk, expecting further upside.
- Potential for momentum: Market stability, along with rising SIP and passive inflows, could fuel a virtuous cycle benefiting equity markets.
- Debt fund correction: The steep drop in debt outflows indicates that investors may seek balance, partly shifting into equities amid falling yields or shifting rate expectations.
- Flag on ELSS: Continued withdrawals point to waning excitement in tax-saving vehicles—requires monitoring ahead of FY26 closes.
- Broader AUM growth: With June’s AUM rise to ~₹74.4 lakh crore, the mutual fund industry edges closer to the ₹75 lakh crore milestone.
🧾 Summary Table
| Category | June Inflow (₹ Cr) | Growth vs May |
| Equity (net) | 23,587 | +24% |
| Flexi‑cap | 5,733 | +49% |
| Small‑cap | 4,024 | +25% |
| Mid‑cap | 3,754 | +34% |
| ELSS (outflow) | –556 | — |
| Debt (net) | –1,711 | Improved vs May |
| Hybrid (net) | 23,222 | +12% |
| Gold ETFs | 2,080 | +613% |
| SIP inflows | 27,269 | +2% |
| Total MF inflows | 49,301 | +67% |
| Total AUM | ~74.4 lakh Cr | +3% |
✅ Final Take
June 2025 marked a decisive rebound in the Indian mutual fund industry led by risk-on flows into equities, hybrids, and gold ETFs. A balanced combination of positive market returns, rising SIPs, and growing AUM has reaffirmed investor confidence. While tax-saving ELSS remains subdued, the broader trend signals strong momentum going into the second half of the fiscal year.
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