Despite a massive withdrawal of over Rs1 lakh crore from debt schemes, the mutual funds industry added close to `64,000 crore, taking the overall industry assets to Rs82.22 lakh crore in June from RS81.58 lakh crore in the previous month, or adding 0.8%, as higher inflows in SIPs and equity funds offset the heavy outflow from debt funds.
The overall industry saw a net outflow of Rs52,949 crore in June, lower than the Rs64,131 crore outflows in May, primarily due to a withdrawal of Rs1.09 lakh crore from debt-oriented schemes, inflows into equity funds jumped over 26.5% to Rs28,973 crore. Inflows into systemic investment plans (SIPs) hit a new high of Rs31,781 crore from Rs30,954 crore in May, an increase of RS827 crore, or 2.7%.
June marked the fifth consecutive month in which SIP inflows remained at or above the RS31,000 crore mark, Amfi chief executive Venkat Chalasani told reporters on Friday.
He also said as a result of this the overall assets under management rose to RS82.22 lakh crore in the reporting period from Rs81.6 lakh crore a month earlier.
Equity-oriented funds saw a net inflow of Rs28,973 crore, a sharp surge of 26.5% from the preceding month when it was Rs22,908 crore amid volatile market conditions. Equity funds got inflows of Rs38,440 crore in April, Rs40,450 crore in March, Rs25,978 crore in February and Rs24,028 crore in January.
The industry saw a net outflow of Rs52,949 crore in June, but that is lower than Rs64,131 crore outflow in May, primarily due to a withdrawal of Rs1.09 lakh crore from debt-oriented schemes, Chalasani said.
Within the equity category, midcap funds garnered Rs6,090 crore, followed by small cap funds at Rs5,602 crore and flexi-cap funds at Rs5,231 crore, while large-cap funds received an inflow of Rs2,067crore. Gold exchange traded funds got a net inflow of Rs3,443 crore as against a net outflow of Rs725 crore in May.
Shashwat Singh, an analyst at Bajaj Broking, said the June data show a strong recovery in investor sentiment, with net inflows into equity funds rising 26.5%. The recovery in equity inflows is led by mid-, large- and flexi-cap and thematic funds, while inflows into small-cap funds moderated.
Equity funds AUM rose to `37.33 lakh crore from `36.13 lakh crore, or 3.3%, while debt funds AUM declined to `17.37 lakh crore from `18.25 lakh crore, a fall of 4.8%. Debt funds also saw net outflows of `1.09 lakh crore during the month, mainly due to increased redemptions from liquid funds, reflecting continued short-term liquidity withdrawals.
Among equity categories, large-cap funds AUM rose to Rs4.08 lakh crore from Rs3.97 lakh crore with net inflows rising to Rs2,067 crore from Rs1,592 crore, while mid-cap fund AUM increased to Rs5.06 lakh crore from Rs4.87 lakh crore, while net inflows climbed to Rs6,090 crore from Rs4,385 crore, making the category the biggest contributor among equity funds and small-cap funds AUM rose to Rs4.29 lakh crore from Rs4.04 lakh crore and net inflows increased to Rs5,601 crore from Rs4,945 crore.
Gold ETFs, however, recorded a turnaround, receiving net inflows of Rs 3,443 crore compared with a net outflow of Rs 725 crore in May, although gold ETF AUM declined to Rs 1.70 trillion from Rs 1.84 trillion.
Nehal Meshram, a senior analyst at Morningstar India, said the rebound in inflows into equity funds indicates that investor confidence remains resilient despite ongoing global uncertainties and periodic market volatility. Improved market sentiment, expectations of supportive domestic macroeconomic conditions, and continued strength in retail participation helped support flows during the month.
June also marks the close of the first half of 2026, Meshram said, adding cumulative net inflows into equity-oriented schemes for H1 stood at Rs 1,80,778 crore, up around 12% from Rs 1,60,943 crore a year ago.
