Equity mutual funds saw a significant surge in inflows during June, reaching Rs 23,587 crore, while systematic investment plans (SIPs) hit a new record high.
Equity Funds See Strong Comeback
Inflows into equity mutual funds jumped by 24% month-on-month in June, totaling Rs 23,587 crore. This is a substantial increase from the Rs 19,013.12 crore recorded in May.
This positive trend marks the 52nd consecutive month of net inflows into equity schemes, demonstrating sustained investor interest despite market fluctuations.
SIPs Set New Records
Systematic Investment Plans (SIPs) reached an all-time high in June, with inflows touching Rs 27,268.79 crore. The number of active SIP accounts also grew, now standing at an impressive 8.64 crore.
This strong SIP performance highlights a growing commitment among investors to regular, disciplined savings, even as markets experience volatility.
Rising Investor Confidence
The renewed interest in equity-oriented mutual funds reflects a boost in investor confidence, supported by robust performance across various segments of the equity market.
According to Himanshu Srivastava of Morningstar Investment Research India, broad market gains, including a surge in the Nifty 50 and even stronger rallies in mid- and small-cap indices, have reignited interest in equity investments.
AMFI CEO Venkat Chalasani noted a “healthy shift towards hybrid and arbitrage funds,” indicating maturing investor behaviour and a preference for balanced risk strategies during uncertain periods.
Top Equity Categories Attract Funds
Among equity mutual fund schemes, flexi-cap funds led the way, attracting the highest inflows of Rs 5,733.16 crore in June. This is up from Rs 3,814.32 crore in the previous month, showing a clear preference for flexible investment mandates.
Small-cap and mid-cap funds also continued to see significant interest, with inflows of Rs 4,024.5 crore and Rs 3,754.42 crore, respectively. Large-cap funds received Rs 1,694.33 crore during the same period.
Mixed Fortunes for Debt and Hybrid Funds
Debt mutual funds experienced net outflows of Rs 1,711.47 crore in June, though this was a significant improvement compared to the Rs 15,908.48 crore outflows seen in May.
Liquid funds saw the largest outflows within the debt segment, totaling Rs 25,196.09 crore. However, short-duration funds managed to attract inflows of Rs 10,276.75 crore.
Hybrid funds, which blend equity and debt, continued their positive momentum, with inflows rising to Rs 23,222.65 crore in June, up from Rs 20,765.05 crore in May.
- Equity mutual fund inflows soared 24% to Rs 23,587 crore in June.
- Systematic Investment Plans (SIPs) hit a record high of Rs 27,268.79 crore.
- Flexi-cap funds were the most popular equity category for new investments.
- Overall mutual fund assets under management (AUM) grew by 3% to Rs 74.41 lakh crore.
The latest data underscores a robust growth trajectory for the Indian mutual fund industry, driven primarily by strong retail investor participation and renewed confidence in equity markets.
