SIP inflows increased by ₹180 crore, or around 0.6%, during the month.
The latest data comes as overall net equity inflows into mutual funds declined to ₹24,685 crore in July from ₹28,961 crore in June. Despite the moderation in overall equity inflows, SIP contributions remained above ₹31,000 crore during the month.
Within equity-oriented categories, small-cap funds saw net inflows rise to ₹7,767.5 crore in July from ₹5,602 crore in June, while mid-cap funds recorded inflows of ₹6,192 crore compared with ₹6,090.2 crore in the previous month. Large-cap funds, however, saw a net outflow of ₹1,322 crore in July.
Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), said flexi-cap funds had continued to attract a fair share of flows in recent months, while mid- and small-cap categories had also continued to see inflows.
Santosh Joseph, Founder and Partner at Germinate Investor Services LLP, said flexi-cap funds were becoming a key destination for fresh diversified equity allocations. He also pointed to continued investor preference for mid- and small-cap funds.
Himanshu Srivastava, Principal, Manager Research at Morningstar Investment Research India, said continued SIP inflows remained a key driver of investor participation in equity-oriented mutual fund categories in July.
He said investors continued to allocate through mutual funds despite a mixed market environment, with the recovery in Indian equities from the correction earlier in the year also supporting investor confidence.
Ankur Punj, MD & Business Head, Equirus Wealth, said, “The trend highlights ongoing portfolio rebalancing amid evolving valuations, with investors favouring segments that offer stronger long-term return potential while remaining mindful of associated risks.”
The mutual fund industry’s total assets under management rose to ₹85.59 lakh crore in July from ₹82.22 lakh crore in June.