India’s mutual fund industry witnessed strong momentum in June 2025, led by aggressive inflows into equity schemes. According to data released by the Association of Mutual Funds in India (AMFI), equity mutual fund inflows rose 24 percent month-on-month to ₹23,587 crore, up from ₹19,213 crore in May.
This rise was primarily driven by renewed retail participation, especially in midcap, smallcap, and flexi-cap categories.
Category-Wise Equity Inflows
- Flexi-Cap Funds saw the highest inflow at ₹5,733 crore, a 49 percent increase compared to the previous month.
- Small-Cap Funds attracted ₹4,024 crore, marking a 25 percent increase.
- Mid-Cap Funds recorded ₹3,754 crore in net inflows, reflecting a 34 percent month-on-month jump.
- Large-Cap Funds saw a modest ₹1,694 crore in inflows.
- Sectoral/Thematic Funds added ₹2,222 crore in June, maintaining consistent interest.
- ELSS (Equity-Linked Savings Scheme) continued to witness outflows, amounting to ₹556 crore, marking the third consecutive month of decline.
Industry-Wide Trends
- Total mutual fund inflows, including equity, debt, and hybrid categories, stood at ₹49,301 crore in June, a sharp rise from ₹29,572 crore in May.
- Overall AUM (Assets Under Management) touched a record ₹74.14 lakh crore, up 3 percent from the previous month.
- Debt Funds saw reduced outflows, down to ₹1,711 crore from over ₹15,900 crore in May.
- Hybrid Funds witnessed inflows of ₹23,222 crore, primarily due to arbitrage and balanced advantage fund categories.
- Gold ETFs surged to ₹2,080 crore in inflows, reflecting increased interest in diversification amid global uncertainties.
Systematic Investment Plans (SIP)
SIPs continue to be the bedrock of mutual fund investments:
- Monthly SIP inflow hit a record ₹27,269 crore, a 2.2 percent increase from May.
- Total SIP accounts reached 8.64 crore, indicating rising participation from retail investors.
Key Observations
- Midcap and smallcap segments are leading the current equity cycle, suggesting a higher risk appetite and expectations of stronger returns among retail investors.
- The sharp jump in gold ETF inflows indicates hedging activity and increased demand for safe-haven assets.
- SIPs remain consistent, reinforcing that investors are staying committed to long-term financial goals despite market volatility.
- ELSS redemptions point to tax-season adjustments or shifting preferences toward non-tax-linked equity categories.
Conclusion
The June 2025 AMFI data highlights a broad-based revival in mutual fund participation, especially in mid- and small-cap equities. With inflows growing across asset classes and SIPs hitting record levels, market sentiment appears optimistic. However, the divergence in ELSS and debt fund trends reflects ongoing investor caution in certain segments. Going forward, macroeconomic stability, interest rate directions, and global cues will play a vital role in sustaining this momentum.
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