Net equity mutual fund inflows surged 26% to ₹28,973 crore in June

Despite bouts of volatility, the equity market ended June on a positive note, with the Nifty50 gaining 1.4 per cent as easing oil prices and receding tensions in West Asia lifted sentiment

Net inflows into equity mutual fund (MF) schemes rose 26 per cent month-on-month to ₹28,973 crore in June as investors stepped up lump sum investments amid easing global headwinds. 

“Equity MFs staged a strong comeback in June, after a nearly 40 per cent fall (in net inflows) in May. The recovery underscores the resilience of investor sentiment amid global uncertainties and periodic bouts of market volatility,” Sanjay Agarwal, senior director at CareEdge Ratings, said. 

The benchmark indices ended June on a positive note, with the Nifty50 gaining 1.4 per cent as easing oil prices and receding tensions in West Asia lifted sentiment. 

Net inflows into equity schemes are largely driven by the size of one-time (lump sum) investments and redemptions, as gross systematic investment plan (SIP) inflows tend to remain relatively stable. 

Gross investments into equity schemes were up 17 per cent in June compared to May, while gross SIP inflows, which include flows into schemes across equity, debt, hybrid and passive, were up 3 per cent month-on-month at ₹31,781 crore. Equity schemes corner about 80 per cent of the total SIP inflows. 

Stable SIP inflows and strong lump sum flows in some periods took the cumulative net investments into equity-oriented schemes in the first half (H1) of calendar year (CY) 2026 to ₹1.81 trillion, up around 12 per cent from the corresponding period last year. 

“Investor confidence remains resilient despite ongoing global uncertainties and periodic market volatility. Improved market sentiment, expectations of supportive domestic macroeconomic conditions, and continued strength in retail participation helped support flows,” said Nehal Meshram, senior analyst, Morningstar Investment Research India. 

Net inflows, however, were concentrated in select scheme categories through H1. Flexicap, midcap, and smallcap funds have brought in the bulk of inflows in recent months. 

 

In June, the three categories accounted for net inflows of ₹16,900 crore, which was nearly 60 per cent of the total net equity inflows. 

Apart from the rise in lump sum flows in equity schemes, there were positives in other areas as well in June. Net new SIP account openings surged to a multi-month high of 487,000. Gold and silver ETFs (exchange-traded funds), which were seeing outflows in recent months, garnered strong flows last month. 

“Another notable trend was the strong resurgence in ETFs and gold ETFs. ETF inflows of over ₹13,200 crore and gold ETF inflows of ₹3,443 crore point towards investors increasingly using passive products and gold as strategic portfolio allocation tools rather than tactical trades,” said Suranjana Borthakhur, head of distribution & strategic alliances, Mirae Asset Investment Managers (India).