Equity mutual fund inflows rebound to Rs 28,973 crore in June; SIPs top Rs 31,700 crore

Investor sentiment towards equity mutual funds improved in June, with net inflows into actively managed equity schemes rebounding sharply after touching the lowest level of the year in May. Fresh investments increased across most equity fund categories, led by mid-cap, flexi-cap and large-cap funds, while gold exchange-traded funds (ETFs) staged a strong comeback and systematic investment plan (SIP) contributions remained above the Rs 31,000-crore mark.

According to monthly data released by the Association of Mutual Funds in India (AMFI), actively managed equity mutual funds received net inflows of Rs 28,973.41 crore in June, up from Rs 22,907.77 crore in May, which had marked the weakest monthly equity inflow of 2026 so far.

At the industry level, overall net outflows narrowed to Rs 52,948.78 crore in June from Rs 64,021.17 crore in the previous month, indicating an improvement in investor activity despite continued redemptions from debt-oriented schemes.

Mid-cap funds lead equity inflows

Mid-cap funds emerged as the biggest beneficiaries of improving investor sentiment during the month. The category attracted Rs 6,090.17 crore in net inflows, significantly higher than Rs 4,385.06 crore in May.

Flexi-cap funds also remained popular among investors, garnering Rs 5,231.31 crore, up from Rs 4,945.57 crore in the previous month.

Large-cap funds witnessed a notable pickup, with inflows rising to Rs 2,067.48 crore from Rs 1,592.93 crore in May, suggesting investors were gradually increasing allocations to relatively stable equity segments.

Small-cap funds continued to attract strong interest despite a marginal moderation. The category received Rs 5,601.96 crore, compared with Rs 6,263.56 crore in May.

Suranjana Borthakhur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), said: “June’s AMFI data reinforces that investor confidence remains intact despite intermittent market volatility. Equity inflows strengthened to ₹28,973 crore from ₹22,908 crore in May, while industry AUM touched a fresh high of ₹82.22 lakh crore. The increase in inflows across Large Cap, Mid Cap and Small Cap funds suggests investors are participating across the market-cap spectrum rather than chasing a single pocket of the market. Mid Cap and Small Cap continued to attract healthy flows of over ₹6,090 crore and ₹5,602 crore respectively, indicating sustained conviction in India’s long-term growth story.”

Meanwhile, sectoral and thematic funds nearly doubled their inflows to Rs 1,469.26 crore, up from Rs 647.87 crore, reflecting renewed interest in thematic investment opportunities.

Debt funds witness heavy redemptions

Debt mutual funds continued to face pressure as investors withdrew Rs 1.09 lakh crore during June, higher than the Rs 96,948.51 crore redeemed in May.

MUST READ: What ₹10,000 monthly SIP would have grown to in these top-performing mutual funds

Among debt categories, liquid funds recorded the largest outflow at Rs 42,293.29 crore, followed by low-duration funds, which witnessed redemptions of Rs 16,484 crore.

Overnight funds also remained under pressure, recording net outflows of Rs 10,579.58 crore, although these were lower than May’s outflow of Rs 15,524 crore. Gilt funds with 10-year constant duration saw the smallest outflow of Rs 102 crore.

Hybrid and passive funds attract investors

Hybrid mutual funds posted net inflows of Rs 12,892.76 crore during June. Among hybrid categories, arbitrage funds attracted the highest inflows of Rs 5,799 crore, followed by multi-asset allocation funds with Rs 4,810 crore. Equity Savings Funds were the only hybrid category to witness net outflows, amounting to Rs 494 crore.

MUST READ: ELSS isn’t just about tax savings: This fund outperformed many equity schemes over 3, 5, 10 years

Passive investment products recorded a sharp improvement. Other schemes, including ETFs, index funds and fund of funds (FoFs), received Rs 16,724 crore in net inflows compared with just Rs 361 crore in May.

Gold ETFs made a remarkable comeback, attracting Rs 3,443.23 crore after witnessing net outflows of Rs 725.04 crore in the previous month. Other ETFs received Rs 13,237 crore, while overseas fund of funds garnered Rs 101 crore. Index funds, however, recorded a marginal outflow of Rs 58 crore.

SIP flows stay resilient

Retail participation through SIPs continued to remain robust despite market volatility. Monthly SIP contributions increased to Rs 31,781 crore in June from Rs 30,954 crore in May, marking a 2.7% rise and extending the streak of monthly collections above or close to Rs 31,000 crore for the fifth consecutive month.

MUST READ: How much can flexi cap funds fall? Historical data reveals worst-case scenarios for investors

The mutual fund industry’s total assets under management (AUM) rose 1% month-on-month to Rs 82.05 lakh crore in June from Rs 81.38 lakh crore in May. During the month, seven new fund offers (NFOs) collectively mobilised Rs 460 crore, with WhiteOak Capital Aggressive Hybrid Fund accounting for the largest share at Rs 310 crore, reflecting continued interest in new investment opportunities despite volatile market conditions.