Dalal Street might have been nursing a hangover in July, but mutual funds were busy throwing a party. The month saw investors pour a record Rs 42,702 crore into growth and equity-oriented schemes even as stock markets looked anything but cheerful.
According to fresh data from the Association of Mutual Funds in India (AMFI), total industry assets under management (AUM) rose 1.3% to Rs 75.36 lakh crore in July, shrugging off a strong US dollar and continued foreign fund outflows.
The average AUM touched Rs 77 lakh crore, while the number of mutual fund folios climbed to an eye-popping 24.57 crore.
Retail investors, it seems, were the real heroes of the month. Folios in equity, hybrid and solution-oriented schemes jumped to 19.41 crore from 19.07 crore in June. And SIPs were booming as Rs 28,464 crore flowed in through systematic plans, with a record 68.69 lakh new SIPs registered, pushing the total number of contributing accounts to 9.11 crore.
SIP FOR THE WIN?
SIP assets now stand at over Rs 15.19 lakh crore.
“The total Assets under Management grew by 1.3% despite pressures from strong US Dollar and persistent foreign fund outflows. This is a testament to sustained investor confidence and disciplined participation,” said AMFI chief executive Venkat N Chalasani, hailing the record SIP contributions as “clear evidence of disciplined investing even amid volatility.”
The confidence was clear in the numbers. “Equity mutual fund schemes experienced a notable 81% increase in net inflows in July 2025, reaching Rs 42,702.35 crore, up from Rs 23,587.05 crore in June,” said Jatinder Pal Singh, CEO of ITI Mutual Fund. Investors, he said, were using market corrections to buy in, which is a sign of “sustained interest in equities as a key investment choice” amid resilient fundamentals.
But not everyone is cheering without caution. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, warned that while the “huge liquidity” from retail investors can support the market, valuations in the broader market, particularly smallcaps, remain elevated.
His advice is to focus on quality, fairly valued growth stocks, with midcap IT offering value-buying opportunities.
RISING RISK APPETITE
The flow breakdown tells its own story of rising risk appetite. “With a record-breaking collection of Rs 42,702 crore, the buoyancy in MF collections is clearly evident,” said Viraj Gandhi, CEO of SAMCO Mutual Fund.
Thematic funds scooped up Rs 9,246 crore, smallcaps Rs 6,484 crore, and flexi-cap schemes Rs 7,654 crore in July. Over the past 36 months, thematic and smallcap categories together have accounted for 42% of all net flows, a sign investors are willing to take on more risk.
Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal AMC, called the surge “remarkable” with growth of over 25% seen across large cap, flexi cap, small cap, thematic and large and midcap categories.
“Indian retail investors have come of age,” he said, crediting “consistent positive messaging” and a long-term belief in Indian markets for the record flows.
Even as the Sensex and Nifty wobbled through July, mutual funds found their sweet spot, powered by the patience of SIP investors and a growing conviction that dips are opportunities.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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