The mutual fund industry’s total assets under management (AUM) increased to ₹82.22 lakh crore at the end of June from ₹81.58 lakh crore in May.
Among equity categories, mid-cap funds received inflows of ₹6,090.2 crore in June, up from ₹4,385 crore in the previous month, while small-cap funds attracted ₹5,602 crore compared with ₹4,946 crore in May.
Large-cap fund inflows also increased to ₹2,067.5 crore from ₹1,592 crore in the previous month.
Sectoral and thematic funds recorded inflows of ₹1,469.3 crore in June, up from ₹648 crore in May. Equity-linked savings schemes (ELSS) continued to witness outflows, although these narrowed marginally to ₹633.9 crore from ₹651 crore a month earlier.
Among other categories, hybrid funds attracted inflows of ₹12,892.8 crore against ₹10,560 crore in May. Credit risk funds saw inflows of ₹247.6 crore, compared with ₹49.5 crore in the previous month.
Gold ETFs recorded inflows of ₹3,443 crore in June after witnessing outflows of ₹725 crore in May. Exchange-traded funds (ETFs) as a whole received inflows of ₹13,238 crore, compared with outflows of ₹620.2 crore in the previous month.
On the debt side, liquid funds recorded outflows of ₹42,293.3 crore in June, higher than outflows of ₹29,681 crore in May. Corporate bond funds also saw higher outflows at ₹7,557.3 crore, compared with ₹7,010 crore in the previous month.
Dividend yield funds reported outflows of ₹49.4 crore, lower than ₹97.5 crore in May, while new fund offers (NFOs) mobilised ₹460 crore compared with ₹471 crore in the previous month.
Commenting on the trends, Shridatta Bhandwadar, CIO–Equities at Canara Robeco Asset Management Company, said India’s medium-term earnings outlook remains constructive, supported by improving consumption, healthy liquidity conditions, easing inflation and a recovery in credit growth.
He noted that earnings growth among mid- and small-cap companies has remained stronger than that of large-cap firms, while adding that near-term market volatility could persist due to geopolitical developments and the progress of the monsoon.
Rohit Sarin, Co-founder of Client Associates, said the June data indicated continued investor participation in equity mutual funds despite market volatility.
He added that the return of inflows into Gold ETFs reflected investors’ preference for portfolio diversification, while the sharp outflows from debt funds appeared to be linked primarily to institutional treasury management and short-term liquidity requirements rather than a change in long-term investment preferences.