Driven by the mark-to-market gains in equities, the overall net assets under management (AUM) of the mutual fund industry rose to Rs 74.4 trillion Rs 72.20 trillion in May and Rs 69.99 lakh crore in April. The rise was led by a 24% to Rs 23,587 crore, taking the net inflow to Rs 49,095 crore, 66% jump over May. Continuing inflows into SIPs which crossed the Rs 27,000-crore mark for the first time, also boosted the overall industry AUM, show the latest industry lobby Amfi data.
Another booster for the overall market was the continuing inflows into the SIPs, which set a new record of crossing the Rs 27,000 crore in the reporting month.
The massive claw back in inflows into equity funds in the reporting month comes after a sharp 22% decline in May, the Association of Mutual Funds (Amfi) said on Wednesday. This makes inflows into equity funds remaining in the positive zone for the 52nd month in a row.
Market benchmarks remained largely stable and investor sentiment appeared to reflect this optimism. During the month, Nifty gained 2.7%, while the Sensex gained 3.1% despite continued uncertainty amidst global trade tensions and geopolitical conflicts in the Middle East.
However, inflows through new fund offers fetched only Rs 1,986 crore, 52% down from the previous months when it was Rs 4,170 crore.
Inflows through the systematic investment plan (SIP) route rose to a new high of Rs 27,269 crore in June, highlighting retail investors growing discipline and resilience despite market volatility. This marked a 2.2% increase over Rs 26,688 crore seen in May, and a 5.2% rise over March.
The number of contributing SIP accounts also rose from 8.56 crore to 8.64 crore in June, taking SIP assets under management to Rs 15.31 trillion, or 20.6% of the fund industry’s total assets, up from 20.2% in May.
Total mutual fund folios reached 24.13 crore in June, of which retail folios across equity, hybrid, and solution-oriented schemes rose to 19.07 crore from 18.84 crore in May. Retail AUM across these schemes stood at Rs 43.99 trillion up from Rs 42.2 trillion in May.
Commenting on the numbers, Venkat Chalasani, the chief executive of Amfi said, "while market volatility has made some investors cautious, we’re also seeing 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.”
In the equity funds category, large cap funds led gains with inflows of Rs 1,694 crore, up 35% from Rs 1,250.5 crore in the previous month, while 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 saw inflows of Rs 3,754 crore, marking a 34% increase from Rs 2,808.7 crore.
On the other hand, sectoral/thematic funds saw inflows falling by a whopping 77% to Rs 475.61 crore from Rs 2,052.5 crore, while ELSS funds saw outflows of Rs 556 crore, down 18% from Rs 678 crore outflows. Dividend yield funds posted inflows of Rs 45.55 crore, reversing from an outflow of Rs 20.82 crore in May.
Gold ETFs saw inflows jump to Rs 2,080.9 crore, rising over six-fold from Rs 292 crore in May, a 613% surge. Other ETFs saw inflows of Rs 844.43 crore, buy down 79% from Rs 4,086.8 crore. Inflows into hybrid funds rose to Rs 23,223 from Rs 20,765 crore in May and arbitrage funds saw the second highest inflows across categories at Rs 15,584 crore around 0.7% lower than 15,702 crore.
Open-ended income/debt-oriented mutual funds saw net outflows of Rs 1,711 crore, a 89% increase from Rs 15,908 crore, while liquid funds continued to see heavy outflows at Rs 25,196 crore, though down 37% from Rs 40,205 crore. Overnight funds also remained in the negative zone with Rs 8,154 crore outflows. 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%; corporate bond funds saw inflows of Rs 7,124 crore, 41% lower from Rs 11,983 crore.
Naval Kagalwala of Shriram Wealth noted as much as two-thirds (65.7%) of the monthly growth came from equity and hybrid schemes representing a growing interest for investing in equities. This should help build long-term wealth for investors. "However, 25% of the monthly growth is in mid, small and sectoral/thematic schemes, which are relatively higher risk, which calls for investors to diversify and allocate across categories and asset classes, in line with their risk profile.
Morningstar India’s Nehal Meshram said with net inflows crossing Rs 8,000 crore in the first half of 2025, gold ETFs are increasingly being used as part of long-term asset allocation strategies. The trend highlights gold’s continued relevance in diversified portfolios, particularly amid uncertain economic and policy backdrops.
Narender Singh of Growth Investing, said the funds industry rolled out impressive data sets for June, with net inflow of 49,095 crore, 66% jump over May.
Ankur Punj of Equirus Wealth said the sharp 69% increase over May’s Rs 29,108 crore reflects sustained investor confidence across asset classes, particularly in equity and hybrid categories.
The consistent rise in equity inflows, especially in mid and small-cap segments, reflects growing investor confidence in India’s long-term growth narrative despite global uncertainties. The uptick in hybrid strategies also suggests that investors are increasingly seeking a balance between growth and risk mitigation—a healthy sign of evolving market maturity.
Akhil Chaturvedi of Motilal Oswal AMC said SIP registrations in count as well as flow has touched all time high of 27,300 crore which is up by almost Rs 600 crore. There is confidence amongst retail investors which is reflecting through the incremental flows, this is very healthy and positive for the industry and markets.
Anand Vardarajan of Tata Asset Management said the big news is that the industry is inching towards an AUM of Rs 75 trillion mark, with the June number coming in at Rs 74.4 trillion.