Equity mutual fund inflows surged 81% month-on-month to Rs 42,702 crore in July 2025, compared with Rs 23,587 crore in June, according to data released by the Association of Mutual Funds in India (AMFI) on Monday. On a year-on-year basis, inflows rose 15% from Rs 37,113 crore in July 2024.
In July, the mutual fund industry witnessed total inflows of Rs 1.8 lakh crore against Rs 49,000 crore in June and Rs 29,000 crore in May.
The July month’s inflows saw the industry’s total assets under management (AUM) rising to a record Rs 75.36 lakh crore from Rs 74.4 lakh crore at the end of June.
Additionally, SIP (Systematic Investment Plan) investments registered inflows to the tune of Rs 28,464 crore during the month under review against Rs 27,269 crore in June.
Sectoral and thematic funds top the chart
Among the 11 equity fund categories, sectoral and thematic funds topped the chart with inflows of Rs 9,426 crore. Flexi-cap funds witnessed inflows to the tune of Rs 7,654 crore. Sectoral and thematic schemes also saw a sharp monthly jump, rising 1,882% from Rs 475 crore in the previous month. Dividend yield funds ranked next in terms of growth, with inflows rising 112% to Rs 96.65 crore from Rs 45.55 crore.
Small-cap, mid-cap funds saw an increase in inflows
Small-cap funds attracted Rs 6,484 crore, while mid-cap schemes saw inflows of Rs 5,182 crore, registering monthly increases of 61% and 38%, respectively.
Only ELSS funds saw an outflow among the 11 equity fund categories, with investors exiting with Rs 368 crore in July compared with an outflow of Rs 556 crore in June.
Akhil Chaturvedi, Executive Director and Chief Business Officer, Motilal Oswal Asset Management Company, said, “Quite a remarkable jump in net sales of equity-oriented schemes close 42,000 crore. Growth upwards of 25% is seen across categories from large-cap to flexi-cap to small-cap, other categories such as thematic and large & midcap also has seen a very healthy growth.”
“I think Indian retail investors have come off age and seriously looking at equities a meaningful allocation to their portfolios. Consistent positive messaging from industry all stakeholders and larger belief in Indian capital markets in the long run seem to be the major reason for such massive growth.”
Debt mutual funds regained investor interest
Debt mutual funds regained investor interest in July, posting net inflows of Rs 1.06 lakh crore after two straight months of outflows. The segment had witnessed withdrawals of Rs 15,908 crore in May and Rs 1,711 crore in June.
Of the 16 debt fund sub-categories, most reported inflows, barring medium-to-long duration funds, long-duration funds, credit risk funds, banking & PSU funds, and gilt funds with a 10-year constant duration.
Money market funds led the pack with Rs 44,573 crore in inflows, followed by liquid funds at Rs 39,354 crore. Medium-duration funds recorded the smallest inflow at Rs 23.98 crore.
Of the 5 debt fund categories that saw outflows in July, banking & PSU funds recorded the highest at Rs 661 crore. Long-duration funds saw outflows of Rs 416 crore.
Hybrid mutual funds logged a 10% month-on-month decline in inflows, garnering Rs 20,879 crore in July compared with Rs 23,222 crore in June. All hybrid sub-categories attracted inflows, with arbitrage funds leading at Rs 7,295 crore.
Multi-asset allocation funds followed with Rs 6,197 crore, while dynamic asset allocation/balanced advantage funds ranked next.