Equity MF Inflows Jump 24% in June to Rs 23,587 Crore; Smallcap and Midcap Funds in Demand: AMFI Data

Equity mutual fund inflows reversed course from last month’s decline and rose 24% in June to Rs 23,587 crore, data released on July 9 by the Association of Mutual Funds in India (AMFI) showed. Back in May, equity mutual fund inflows had fallen 22% to Rs 19,013.12 crore.

The recovery in flows coincided with a decent but steady performance by the equity markets. Both the Nifty 50 and the Sensex posted gains of around 3% during the month, sailing through continued geopolitical tensions in West Asia and lingering uncertainty over global trade tariffs.

Despite these global headwinds, mark-to-market gains in equities helped lift the mutual fund industry’s overall assets under management (AUM) to ₹74.41 lakh crore in June, up from ₹72.20 lakh crore in May and ₹69.99 lakh crore in April.

“The uptick in mutual fund inflows reflects strong positive momentum and a shift towards reduced equity fund outflows. We remain optimistic about the Indian economy and believe Indian equities are well-positioned for sustainable growth in the medium to long term,” said Jatinder Pal Singh, CEO of ITI Mutual Fund.

Among equity-oriented mutual fund categories, sectoral and thematic funds emerged as favourites, drawing ₹9,633.79 crore in inflows. Flexicap schemes followed closely, recording flows worth ₹9,525.69 crore for the month.

“The rise in hybrid strategies signals that investors are increasingly seeking a balance between growth and risk management, a healthy sign of an evolving and maturing investment landscape. With global interest rate cycles stabilising and India’s earnings season in motion, we expect continued investor interest in thematic and multi-asset strategies as we move into the second quarter of FY26,” said Ankur Punj, Managing Director and National Head at Equirus Wealth.

Among equity segments, midcap and smallcap funds clearly stole the spotlight. Midcap funds saw the highest inflows at ₹7,539.53 crore, closely followed by smallcap funds with ₹7,426.63 crore. Largecap funds, by contrast, drew relatively moderate inflows of ₹5,171.34 crore.

“The consistent rise in equity inflows, particularly into mid and small-cap segments, underlines growing investor confidence in India’s long-term growth story despite global uncertainty,” Punj added.

In other asset classes, debt-oriented mutual funds recorded outflows of ₹1,711 crore, despite in the red, significantly lower than the ₹15,908 crore pulled out in May. While Liquid and Overnight Funds experienced routine quarter-end redemptions, steady inflows into Corporate Bond and Short Duration Funds point to selective optimism in the fixed-income space.

Exchange-traded funds (ETFs) logged net flows of ₹3,997 crore, down from ₹5,526 crore in May, with Gold ETFs gaining traction as investors moved towards safer assets amidst global macroeconomic uncertainty.

“Overall, the mutual fund industry’s rising AUM, along with the broader trends across equity, debt, and ETF segments, hints towards a maturing investor base. Increased retail participation and growing comfort with diversified strategies suggest Indian investors are becoming more attuned to long-term wealth creation, Punj believes.