MF Inflows Rise 24% in June to ₹23,587 Cr, Led by Equity and Hybrid Segment Rally

Retail investors showed increased interest in mutual funds during June 2025, as net inflows into equity-oriented schemes rose by 24% to ₹23,587 crore, according to data released by the Association of Mutual Funds in India (AMFI). This marked a sharp rebound from the ₹19,013 crore recorded in May.

The rally in stock markets, along with steady economic indicators, supported investor sentiment. The Sensex gained over 3%, and the Nifty moved up by around 2.7% during the month. This helped boost mark-to-market gains across equity funds, lifting the overall industry assets under management (AUM) to ₹74.41 lakh crore, up from ₹72.20 lakh crore in May.

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Flexi Cap, Mid Cap, and Small Cap Funds in Demand

Among equity fund categories, flexi cap funds emerged as the most preferred, drawing ₹5,733 crore in June, up nearly 49% from the previous month. Small-cap funds followed with ₹4,024 crore in net inflows, while mid-cap schemes received ₹3,754 crore, showing a 34% increase.

Most other equity fund categories also posted gains, except for Equity Linked Saving Schemes (ELSS), which saw outflows of ₹556 crore for the third consecutive month. Dividend Yield Funds returned to positive territory, reporting ₹45 crore in net inflows, reversing May's modest outflows.

Debt Fund Outflows Ease

Debt-oriented schemes still faced redemptions in June, but the pressure eased. Total outflows stood at ₹1,711 crore, far lower than the ₹15,908 crore recorded in May. Of the 16 debt fund types, eight saw inflows.

Short-duration funds topped the list with ₹10,276 crore in additions, followed by money market funds with ₹9,484 crore. Liquid funds, however, saw heavy withdrawals of ₹25,196 crore, and overnight funds lost ₹8,154 crore. Medium-duration funds recorded only minor outflows of around ₹61 crore.

Hybrid Funds Continue to Grow

Hybrid funds attracted ₹23,222 crore in June, a 12% jump over May. Arbitrage funds led the pack, bringing in ₹15,584 crore. Multi-asset allocation funds collected ₹3,209 crore, while dynamic asset allocation (balanced advantage) funds added ₹1,885 crore. Notably, aggressive hybrid schemes saw inflows grow nearly threefold to ₹1,331 crore.

SIPs and Passive Fund Trends

Monthly inflows via systematic investment plans (SIPs) rose to ₹27,269 crore, compared to ₹26,688 crore in May. Meanwhile, passive schemes such as index funds and ETFs received ₹3,997 crore, 28% lower than in May.

Gold ETFs stood out by drawing ₹2,080 crore in June, up from ₹292 crore the previous month. Index funds added ₹1,043 crore, while other ETFs contributed ₹844 crore.

Conclusion

Growing trust among ordinary investors is demonstrated by the increase in mutual fund investments last month. The outlook for mutual funds appears promising as markets remain stable and demand for various investment options increases. In the next few months, industry analysts anticipate further inflows, particularly if the economy remains positive.