Net inflows into equity mutual funds rose 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. Despite persistent market volatility during the month, investors remained committed to equity investing, reflecting confidence in long-term wealth creation through mutual funds.

Key Highlights

• Equity mutual fund inflows rose 26.48% to Rs 28,973.41 crore in June, led by mid-cap funds.
• SIP contributions rose to Rs 31,781 crore in June, as mutual fund AUM hit Rs 82.05 lakh crore.

Mid-cap funds saw the biggest jump among major diversified equity categories, with net inflows rising to Rs 6,090.17 crore from Rs 4,385.06 crore in May - a 38.88% month-on-month increase, suggesting investors continued betting 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, a 34.01% jump, reflecting sustained demand for funds investing across mid, small-cap, and large stocks.

Large-cap funds saw net inflows rise from Rs 1,592.93 crore to Rs 2,067.48 crore, up 29.79%, suggesting investors also returned to relatively stable blue-chip stocks amid improving sentiment. Large & Mid Cap funds rose to Rs 4,321.32 crore from Rs 3,278.22 crore, a 31.82% increase, as investors continued seeking balanced exposure to established and faster-growing businesses.

Small-cap funds remained among the biggest wealth creators in absolute terms, with inflows rising from Rs 4,945.57 crore to Rs 5,601.96 crore, a 13.27% increase, continuing to attract strong retail participation despite valuation concerns. Flexi-cap funds, the largest equity category by inflows, edged up modestly from Rs 5,175 crore to Rs 5,231.31 crore, a 1.08% rise.

Sectoral and thematic funds saw the sharpest percentage recovery, with net inflows surging from Rs 647.87 crore to Rs 1,469.26 crore - a 126.79% jump - indicating renewed investor interest in theme-based opportunities after a subdued May.

Also Read: Equity Mutual Fund Inflows Hit One-Year Low in May: AMFI Data

ELSS Remains the Only Category With Outflows

ELSS (Equity Linked Savings Scheme) funds remained the only major diversified equity category to see net outflows, recording Rs 633.88 crore in outflows in June compared with Rs 650.78 crore in May. While outflows narrowed slightly, investor interest in tax-saving funds stayed subdued, likely because the peak tax-saving investment season had already ended.

Hybrid Funds See Strong Momentum

Hybrid mutual funds also saw stronger interest, with net inflows rising to Rs 12,892.76 crore from Rs 10,560.24 crore, up 22.09%. Within this category, Multi Asset Allocation Funds remained the biggest contributor, rising 22.46% to Rs 4,810.76 crore, as investors sought diversification across equity, debt, and gold. Balanced Hybrid/Aggressive Hybrid Funds recorded the sharpest growth, surging 223.74% to Rs 2,121.28 crore from just Rs 655.24 crore in May.

Debt Funds See Higher Outflows

Debt mutual fund schemes continued to see net outflows, which rose to Rs 1,09,053.65 crore in June from Rs 96,948.51 crore in May - a 12.5% increase. Liquid Funds recorded the highest outflow at Rs 42,293.29 crore, while Low Duration Funds and Ultra Short Duration Funds also saw sharply higher redemptions. Overnight Funds and Money Market Funds, however, saw slightly lower outflows compared to May.

SIP Contributions and AUM Rise

SIP contributions for June stood at Rs 31,781 crore, up 2.7% from Rs 30,954 crore in May. The mutual fund industry's net AUM rose 1% month-on-month to Rs 82.05 lakh crore, compared to Rs 81.38 lakh crore in May.