Mutual fund AUM crosses ₹74 lakh crore in June as hybrid, equity funds drive flows: AMFI

India’s mutual fund industry crossed a new milestone in June 2025. Total assets under management (AUM) rose to ₹74.41 lakh crore, up 13.2% on the quarter and 3.1% on-month, according to Association of Mutual Funds in India’s (AMFI’s) June data.

Strong mark-to-market (MTM) gains and robust investor flows supported this growth. Net inflows in June stood at ₹49,095 crore. Almost 95% of this came from equity and hybrid funds.

Equity and hybrid funds see strong inflows

Equity funds’ AUM climbed to ₹33.47 lakh crore, up 4.4% from May. Flexi-cap funds led the segment with net inflows of ₹5,733 crore for the fourth straight month. Small-cap funds attracted ₹4,024 crore. However, ELSS funds saw net outflows of ₹556 crore for the third month in a row.

Hybrid funds continued to gain traction. AUM in the category grew nearly 3.8% on-month to ₹9.92 lakh crore. Arbitrage funds were the biggest draw, seeing inflows of ₹15,585 crore. Volatile markets created price gaps that attracted arbitrage strategies.

Debt funds hit new peaks amid rate cuts

Debt-oriented schemes reached a record AUM of ₹17.58 lakh crore. The RBI’s 50-basis-point rate cut to 5.50% helped drive bond yields lower. Investors showed renewed interest in short-duration and money market funds. Short-duration funds recorded 8.6% growth in AUM from the previous month.

Passive funds stay on track

Passive funds marked their 56th consecutive month of net inflows. Assets rose 3.1% to ₹12.62 lakh crore. Gold ETFs led the pack with ₹2,081 crore in inflows as investors hedged against geopolitical tensions.

SIP flows at all-time high

Systematic investment plan (SIP) flows stayed resilient. Contributions touched a record ₹27,269 crore in June, up 2.2% on-month. The number of SIP accounts rose to 8.64 crore, up from 8.56 crore in May. SIP assets now make up over 20% of the industry’s AUM.

Folio count expands

Mutual funds added 30 lakh new folios during June, taking the total to 24.13 crore. Equity and passive funds accounted for nearly 90% of new folios, reflecting sustained retail interest.

Outlook

Strong domestic buying by DIIs and steady retail inflows via SIPs continue to support the industry. With equity indices like the Nifty 50 TRI and Sensex TRI posting gains, investors appear optimistic despite global market risks, AMFI said.