Liquidity boost, market confidence drive mutual fund AUM to ₹75.36 lakh crore in July: ICRA Analytics

India’s mutual fund industry touched an all-time high in July, with assets under management (AUM) rising to ₹75.36 lakh crore, according to ICRA Analytics. The growth was powered not only by record Systematic Investment Plan (SIP) inflows but also by expectations of liquidity support, robust equity markets, and strong participation across debt instruments.

Equity mutual funds saw a sharp 81% month-on-month jump in net inflows, totaling ₹42,702 crore. Investor appetite spread across large-cap, mid-cap, and small-cap schemes, reflecting confidence in India’s macroeconomic fundamentals. ICRA noted that healthy corporate earnings and positive market sentiment were key drivers.

Debt funds attracted ₹1.07 lakh crore in July, with money market and liquid schemes leading the flows. Analysts believe that the anticipated impact of a 100 basis points CRR cut has further strengthened investor interest in short-duration instruments.

On the retail side, SIP inflows hit a record ₹28,464 crore, with active SIP accounts climbing to 9.45 crore.

According to ICRA, rising financial literacy, consistent equity returns, and digital platforms have made SIPs the most preferred route for young and first-time investors aiming for long-term wealth creation.

Hybrid funds presented a mixed picture. Multi-asset and dynamic allocation funds gained traction, while arbitrage schemes witnessed outflows, signaling a shift in investor preferences.

The industry also saw 30 new fund offers (NFOs) that raised ₹30,416 crore during the month, further broadening investor choice across equity, debt, hybrid, and passive categories.

“Diversification of products across equity, debt, hybrid and passive funds ensured that investors with different risk profiles found suitable options,” ICRA Analytics observed, adding that July’s performance stresses growing investor confidence in mutual funds as a long-term vehicle for wealth creation.