Equity MF inflows rise 24% to ₹23,587 cr in June, ending five-month decline

Net equity MF inflows rose to Rs 23,587 crore in June as redemptions fell; SIPs hit record Rs 27,269 crore, pushing mutual fund industry AUM to Rs 74 trillion

Net inflows into equity mutual fund (MF) schemes climbed 24 per cent month-on-month (M-o-M) to ₹23,587 crore in June, snapping their five-month declining trend. The surge in net inflows was primarily driven by a decline in redemptions amid buoyancy in the stock market.

 

The rise in equity MF inflows, experts said, reflects a resurgence in investor confidence in equities. 

“The inflows were driven by improved market sentiment, attractive valuations after recent corrections, and a portfolio reallocation towards equities amid subdued returns in other asset classes,” said Himanshu Srivastava, associate director — manager research, Morningstar Investment Research India.

 

 

Within the active equity category, midcap, smallcap, and flexicap funds continued to corner the bulk of inflows. 

“Largecap, midcap, smallcap, and flexicap funds witnessed strong momentum, with inflows growing 25–35 per cent M-o-M. Flexicap funds led the inflows within the equity segment, reflecting growing investor interest in diversified strategies as markets began a strong recovery from the lows,” said Feroze Azeez, joint chief executive officer, Anand Rathi Wealth.

 

Even as market sentiment improves, one-time or lump-sum investments remain soft. Systematic investment plan (SIP) investments, which have been the key contributor to equity MF inflows in 2025, likely accounted for a large chunk of the gross equity MF inflows of ₹56,944 crore.

 

In June, gross SIP inflows grew 2 per cent to a new all-time high of ₹27,269 crore. The number of SIP accounts contributing to the monthly flows rose to 86.5 million from 85.6 million in May.

 

Equity MF inflows rose last month as the benchmark indices logged gains for the fourth straight month, inching closer to all-time highs. The Nifty 50 and Sensex went up around 3 per cent. Broader market indices logged higher gains, with the Nifty Smallcap 100 and Nifty Midcap 100 rising 6.7 per cent and 4 per cent, respectively.   

Overall, net inflows across equity, debt, hybrid, and passive schemes stood at ₹49,095 crore in June, according to data released by the Association of Mutual Funds in India (Amfi). These inflows, along with mark-to-market gains, added over ₹2 trillion to the industry’s assets under management (AUM), taking the asset tally to a new high of ₹74 trillion.

 

“The AUM crossed ₹74 trillion in June 2025, setting a new milestone. This growth continues to be powered by strong retail participation and the steady rise in SIP inflows, which stood at ₹27,269 crore for the month. The number of contributing SIP accounts also touched an all-time high of 86.4 million, underlining the growing trust in MFs as a disciplined investment vehicle,” said Venkat Chalasani, chief executive, Amfi.

 

Arbitrage funds and gold exchange-traded funds (ETFs) also recorded relatively higher inflows. While gold ETF inflows topped ₹2,000 crore after remaining subdued for the past three months, arbitrage fund inflows rose to a record high of ₹15,585 crore.