Net inflows into equity mutual funds increased 26.48% to Rs 28,973.41 crore in June, according to AMFI data, reversing the slowdown seen in May when inflows had slipped to Rs 22,907.77 crore. While market volatility persisted during the month, investors continued to remain committed to equity investing, reflecting confidence in long-term wealth creation through mutual funds.
Mid-cap funds saw the biggest increase among major diversified equity categories in June. Net inflows rose to Rs 6,090.17 crore from Rs 4,385.06 crore in May, a 38.88% month-on-month jump. The sharp rise suggests investors continued to bet on growth-oriented companies despite valuation concerns.
Multi-cap funds attracted Rs 3,070.26 crore in June against Rs 2,291.01 crore in May. This translates into a 34.01% jump in net inflows, reflecting sustained demand for funds that invest across large-, mid- and small-cap stocks.
Large-cap funds saw net inflows rise from Rs 1,592.93 crore in May to Rs 2,067.48 crore in June, an increase of 29.79%. The rebound suggests investors also returned to relatively stable blue-chip stocks amid improving market sentiment.
Net inflows into Large & Mid Cap funds rose to Rs 4,321.32 crore in June from Rs 3,278.22 crore in May, recording a 31.82% increase. The category continued to benefit from investors seeking a balanced exposure to established companies as well as faster-growing businesses.
Small-cap funds remained among the biggest wealth creators in terms of absolute inflows. Net inflows increased from Rs 4,945.57 crore in May to Rs 5,601.96 crore in June, a 13.27% rise. The category continued to attract strong retail participation despite concerns over expensive valuations.
Flexi-cap funds, the largest equity category by inflows, remained resilient. Net inflows edged up from Rs 5,175.54 crore in May to Rs 5,231.31 crore in June, a modest 1.08% increase, indicating investors continued to prefer diversified portfolios with the flexibility to move across market capitalisations.
Sectoral and thematic funds more than double
Sectoral and thematic funds witnessed the sharpest recovery in percentage terms. Net inflows surged from Rs 647.87 crore in May to Rs 1,469.26 crore in June, a 126.79% jump. The strong rise indicates renewed investor interest in theme-based investment opportunities after a subdued May.
ELSS (Equity Linked Savings Scheme) funds remained the only major diversified equity category to witness net outflows in June. The category recorded a net outflow of Rs 633.88 crore in June compared with Rs 650.78 crore in May. While outflows narrowed by Rs 16.90 crore, or 2.60% month-on-month, investor interest in tax-saving funds remained subdued, likely because the peak tax-saving investment season had already ended.
Hybrid fund inflows jump over 22% in June
Hybrid mutual funds also witnessed stronger investor interest in June. Net inflows into the category rose to Rs 12,892.76 crore from Rs 10,560.24 crore in May, an increase of Rs 2,332.52 crore, or 22.09% month-on-month. The rise indicates investors continued to prefer products that offer a mix of equity and debt exposure amid uncertain market conditions.
Multi-asset allocation funds remain the biggest contributor
Among the largest hybrid categories, Multi Asset Allocation Funds continued to attract strong investor interest. Net inflows rose to Rs 4,810.76 crore in June from Rs 3,928.51 crore in May, an increase of 22.46%. The category remained the biggest contributor to hybrid fund inflows as investors sought diversification across equity, debt and gold.
In terms of inflows surge among hybrid categories, Balanced Hybrid/Aggressive Hybrid Funds recorded the sharpest growth. Net inflows surged to Rs 2,121.28 crore in June from Rs 655.24 crore in May, a massive 223.74% jump month-on-month.
Debt-oriented mutual fund schemes continued to witness net outflows in June 2026, with the total net outflow increasing to Rs 1,09,053.65 crore, compared with Rs 96,948.51 crore in May 2026. This represents a month-on-month increase in net outflows of 12.5%.
Among the categories, Liquid Funds recorded the highest net outflow of Rs 42,293.29 crore in June, worsening from Rs 29,680.94 crore in May. Low Duration Funds also saw higher outflows, increasing from Rs 9,400.49 crore to Rs 16,484.01 crore, while Ultra Short Duration Funds registered net outflows of Rs 11,426.26 crore, significantly higher than Rs 1,617.01 crore in the previous month.
Overnight Funds continued to witness heavy redemptions, with net outflows improving slightly to Rs 10,579.58 crore from Rs 15,524.77 crore in May. Money Market Funds also experienced lower outflows at Rs 10,595.39 crore, compared with Rs 24,691.74 crore a month earlier.
The SIP contribution for June was Rs 31,781 crore, reflecting a slight increase of 2.7% from Rs 30,954 crore in May. In June, the net assets under management (AUM) of the mutual fund industry increased by 1% month-on-month, reaching Rs 82.05 lakh crore, compared to Rs 81.38 lakh crore in May.