Equity MF Inflows Surge 81% MoM To Rs 42,700 Crore In July Amid Heightened Volatility

Equity-oriented mutual funds attracted net inflows of Rs 42,702.35 crore in July 2025, as per monthly data released by the Association of Mutual Funds in India (Amfi) on August 11, 2025. This is also the 53rd consecutive month of positive flows into equity funds. In June 2025, the inflows were Rs 23,587.05 crore. This represents a month-on-month jump of over 81 per cent.

Overall, the mutual fund industry saw net inflows of Rs 1.78 lakh crore in July. This was much higher than Rs 49,302 crore in June, a jump of 262 per cent. Most of the growth came from debt funds, especially liquid and money market schemes.

The net assets under management (AUM) of the overall mutual fund industry by the end of the month rose to Rs 75.36 lakh crore. It was Rs 74.40 lakh crore in June 2025 and Rs 72.19 lakh crore in May 2025.

In July 2025, 30 new schemes were launched, all in the open-ended category, across various segments. These new offerings mobilised a total of Rs 30,416 crore.

Total mutual fund folios in India stood at 24.57 crore as of July 2025. Retail mutual fund folios rose to 19.42 crore in July from 19.07 crore in June.

Retail AUM stood at Rs 43.91 lakh crore by the end of the month, slightly lower than Rs 43.99 lakh crore recorded in May 2025.

Venkat N Chalasani, Chief Executive, Amfi, said that the total AUM of the overall industry grew despite pressures from strong US Dollar and persistent foreign fund outflows. "This is a testament to sustained investor confidence and disciplined participation," Chalasani said.

He also noted that the equity mutual funds recording their highest-ever monthly inflow and SIPs hitting their record high is a "clear evidence of disciplined investing even amid volatility."

"AMFI remains committed to investor education and fostering a transparent, well-regulated ecosystem that supports long-term wealth creation,” he added.

Thematic Funds See Dramatic Turnaround

According to Amfi, large-cap funds saw inflows rise to Rs 2,125.09 crore from Rs 1,694.33 crore in June, a growth of 25.42 per cent MoM. Mid-cap inflows grew to Rs 5,182.49 crore, up 38.03 per cent from Rs 3,754.42 crore in the preceding month. Small-cap funds also recorded Rs 6,484.43 crore inflows, a 61.12 per cent jump over Rs 4,024.50 crore in June.

Flexi-cap funds attracted Rs 7,654.33 crore inflows, a 33.50 per cent jump from Rs 5,733.16 crore in June.

The biggest spike came from sectoral and thematic funds, which saw inflows shooting up to Rs 9,426.03 crore, a massive 1,881.2 per cent growth from Rs 475.61 crore in June.

Debt Funds See Sharp Rebound

Debt mutual funds recorded net inflows of Rs 1.06 lakh crore in July, compared with a net outflow of Rs 1,711 crore in June.

Liquid funds moved from an outflow of Rs 25,196 crore in June to an inflow of Rs 39,355 crore in July. Money market funds saw inflows rise from Rs 9,484 crore to Rs 44,574 crore, while low duration funds increased from Rs 3,136 crore to Rs 9,766 crore.

Hybrid Fund Inflows Slip

Hybrid mutual funds saw net inflows of Rs 20,879 crore in July, down about 10 per cent from Rs 23,223 crore in June.

Balanced hybrid/aggressive hybrid funds recorded inflows of Rs 2,364 crore in July, up 77 per cent from Rs 1,332 crore in June. Multi asset allocation funds rose to Rs 6,197 crore from Rs 3,210 crore, a growth of 93 per cent. In contrast, arbitrage funds fell sharply to Rs 7,296 crore in July from Rs 15,585 crore in June, a decline of 53 per cent.

Gold ETF Inflow Slows Even As Gold Price Rises

Other schemes, which include index funds, exchange traded funds (ETFs) and fund of funds (FoFs), saw net inflows of Rs 8,259 crore in July, up 106 per cent from Rs 3,997 crore in June.

Gold ETFs, however, slowed to Rs 1,256 crore in July from Rs 2,081 crore in June, a 40 per cent decline. This moderation in gold ETF flows came even as gold prices have risen recently, led by safe-haven buying amid global uncertainties such as the ongoing Russia-Ukraine conflict, US President Donald Trump-led global trade tensions, the Israel Iran conflict, and expectations of US Federal Reserve rate cuts.

Index fund inflows increased to Rs 2,329.87 crore in July from Rs 1,043.09 crore in June, a gain of 123.36 per cent. Fund of funds investing overseas saw inflows of Rs 196.60 crore, up 583 per cent from Rs 28.80 crore in June.

Inflows into other ETFs jumped to Rs 4,477 crore from Rs 844 crore in June, a surge of 430 per cent.

SIP Inflows Hit Record High In July

Contribution through systematic investment plans (SIPs) touched a new record high in July, rising to Rs 28,464 crore from Rs 27,269 crore in June, a jump of of Rs 1,195 crore or about 4.38 per cent MoM.

The number of contributing SIP accounts reached 9.11 crore by the end of the month, up from 8.98 crore in June, an addition of 13 lakh accounts, or a growth of around 1.45 per cent.

The number of new SIP accounts registered in July was 68.69 lakh and the SIP AUM reached Rs 15.19 lakh crore.