Flexi and small-cap funds registered the highest inflows
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Inflows into equity mutual funds in June increased 24 per cent to ₹23,587 crore against ₹19,013 crore logged in May with investors pumping in more money even as the markets remained volatile.
Flexi and small-cap funds registered the highest inflows of ₹5,733 crore ( ₹3,841 crore) and ₹4,024 crore (₹3,214 crore) while mid-cap funds attracted investment of ₹3,754 crore (₹2,809 crore, according to the Association of Mutual Funds in India (AMFI) data released on Wednesday.
Total equity assets increased to ₹33.47 lakh crore (₹32.05 lakh crore) with a mark-to-market gain of ₹1.18 lakh crore.
Venkat Chalasani, Chief Executive, AMFI, said the sharp increase in equity inflows despite the market remaining volatile reinforces investor confidence in mutual fund as an attractive investment option.
Though there are a lot of headwinds, he said, the inflows in equity schemes are expected to continue with ample liquidity in the system after the repo and cash reserve ratio cut by the RBI, he added.
The inflows in hybrid funds were up at ₹23,223 crore (₹20,765 crore) largely due to investment of ₹15,585 crore (₹15,702 crore) in arbitrage and ₹3,210 crore (₹2,927 crore) in multi asset allocation funds.
Investor confidence
Himanshu Srivastava — Associate Director — Manager Research, Morningstar Investment Research India, said breaking a five-month declining trend the rebound in equity inflows underscores a resurgence in investor confidence, supported by a strong equity market performance across segments.
Broad-based market gains, including a surge in the Nifty 50 index and even stronger rallies in the mid- and small-cap indices, helped reignite interest in equity investments, he added.
Inflows through SIP hit a new high of ₹27,269 crore (₹26,688 crore) as the contributing SIP accounts increased marginally last month to 8.64 crore against 8.56 crore in May.
The number of SIPs closed were higher at 48 lakh (43 lakh) while fresh SIP registered increased to 62 lakh (59 lakh).
Anand Vardarajan, Chief Business Officer, Tata Asset Management, said the arbitrage category has been another category which has seen strong inflows this year. The inflow into arbitrage category last year was nearly ₹50,000 crore and it has already touched ₹43,000 crore in the first three months of this financial year suggesting that investors are willing to wait and buy on dips.
Suranjana Borthakhur, Head of Distribution, Mirae Asset Investment Managers, said gold ETFs saw strong inflow of ₹2,081 crore amid global uncertainties, while ELSS and thematic categories witnessed some softness, partly due to reduced NFO activity.
Published on July 9, 2025