Net Equity Inflow Surges to a Record High of Rs 42,700 crore in July, shows AMFI data

Equity mutual fund inflows surged to a record ₹42,702.35 crore in July, marking an 81% jump from ₹23,568 crore in June, according to data from the Association of Mutual Funds in India (AMFI). The rise was broad-based across categories, suggesting a revival in investor sentiment despite persistent geopolitical and earnings-related headwinds.

July also marked the 53rd consecutive month of positive flows into equity schemes. On the back of mark-to-market gains in equities, the mutual fund industry’s total assets under management (AUM) climbed to an all-time high of ₹75.35 lakh crore, up from ₹74.41 lakh crore in June, ₹72.20 lakh crore in May, and ₹69.99 lakh crore in April.

Commenting on the trend, Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal Asset Management Company, said, "It’s quite a remarkable jump in net sales of equity-oriented schemes, close to ₹42,000 crore. Growth of over 25% is visible across categories, from large-cap to flexi-cap to small-cap. Thematic, as well as large and mid-cap funds, have also shown very healthy growth.”

“Indian retail investors seem to have matured, making equities a meaningful part of their portfolios. This growth is driven by consistent positive messaging from the industry and a stronger belief in the long-term prospects of Indian capital markets," Chaturvedi added.

Suranjana Borthakhur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India) shared similar views, stating that July saw extremely encouraging inflows. “That said, investors should remain mindful when chasing sectoral opportunities. These products can be rewarding if the risks are understood and investments are made for the right reasons,” Borthakhur added.

 “SIP numbers are also seeing a growth, with the ₹28,464 crore mark now becoming a regular occurrence and could reach the ₹30,000 crore monthly milestone soon. This reflects growing investor maturity, rising financial awareness, greater digital access, and sustained market confidence. The resilience of the Indian markets, despite global uncertainties, is remarkable. Using corrections as opportunities is wise, but in the long run, systematic investing remains the most powerful approach,” he said.

Category-wise, small-cap funds continued to lead for yet another month, attracting ₹6,484.43 crore in July compared with ₹4,024 crore in June, a rise of around 61%. Flexi-cap funds followed with ₹7,654.33 crore in inflows, up 33% from ₹5,733 crore. Mid-cap funds drew ₹5,182.49 crore, marking a 38% growth from ₹3,754 crore in June. Large and mid-cap funds more than doubled their inflows to ₹5,034.71 crore from ₹2,026 crore, while large-cap funds saw a 30% increase to ₹2,125.09 crore.

Sectoral and thematic funds registered the largest absolute gain, with ₹9,426.03 crore in July in comparison to ₹8,224 crore in June, a 15% increase. Equity-linked savings schemes (ELSS) continued to see net outflows, but the withdrawal of ₹368.18 crore in July was lower than June’s ₹556 crore.

On the hybrid side, inflows stood at ₹20,879 crore in July, down from ₹23,223 crore in June. Arbitrage funds saw inflows of ₹7,295 crore compared with ₹15,584 crore in June.

“Focused and small-cap funds also jumped by 66% and 61%, respectively, while large & mid-cap and multi-cap categories posted healthy growth as well. The hybrid segment continues to be encouraging. Despite a slight overall dip, this was largely due to expected arbitrage outflows,” Borthakur said.

Debt-oriented schemes posted net inflows of ₹1,06,801 crore, led by liquid funds, which drew ₹39,354 crore after an outflow of ₹25,196 crore in June. Gold ETFs recorded inflows of ₹1,256 crore in July, compared with ₹2,080.9 crore in June, powered by rising demand for the yellow metal amid global trade uncertainties. Other ETFs saw inflows rise sharply to ₹4,476 crore from ₹844 crore the previous month.