Equity funds log 52-month inflow streak as MFs garner Rs 49,095 cr in June; analyst views

The domestic mutual fund industry saw net inflows of Rs 49,095 crore in June, marking a sharp 69 per cent jump over May’s Rs 29,108 crore. Equity funds attracted Rs 23,587 crore in net inflows, marking the 52nd consecutive month of positive flows, as per AMFI data.

The total assets under management (AUM) for the industry stood at Rs 74,40,670.84 crore, moving closer to the Rs 75 lakh crore milestone.

Analysts said the surge reflects continued investor confidence across asset classes, especially in equity and hybrid categories.

For thew month, SIP inflows came in at Rs 27,269 crore, while the number of contributing SIP accounts hit a record high of 8.64 crore—indicating growing trust in mutual funds as a systematic investment vehicle.

“While market volatility has made some investors cautious, we’re also witnessing a healthy shift towards hybrid and arbitrage funds—a trend that reflects maturing investor behaviour and preference for balanced risk strategies in uncertain times,” said Venkat N Chalasani, Chief Executive at AMFI.

According to Ankur Punj, MD and National Head at Equirus Wealth, the sustained equity inflows—particularly in mid- and small-cap segments—highlight rising investor confidence in India’s long-term growth potential despite global uncertainties. “The rise in hybrid strategies also points to investors aiming for a balance between growth and risk mitigation—a sign of evolving market maturity,” he added.

Anand Vardarajan, Chief Business Officer at Tata Asset Management, noted that the industry is inching toward the Rs 75 lakh crore AUM mark.

“Equity flows remained strong at nearly Rs 23,300 crore, up by around Rs 4,000 crore over May. The flexi cap category saw robust interest with Rs 5,700 crore in inflows and is fast becoming the largest equity category by AUM at Rs 4.8 lakh crore. Investor preference for this category over mid- and small-cap is quite visible,” Vardarajan said.

He also pointed to strong interest in arbitrage funds. “The whole of last year saw inflows of nearly Rs 50,000 crore, while the first three months of this financial year have already logged Rs 43,000 crore. In June alone, it netted Rs 15,500 crore—indicating that investors are possibly willing to wait and buy on dips,” he added.

With global rate cycles stabilising and India’s earnings season underway, he expects investor focus to remain strong on thematic and multi-asset categories heading into Q2 FY26.