Hybrid mutual funds see record Rs 23,223 cr inflows in June as investors chase balanced returns
Hybrid mutual funds registered their highest-ever monthly net inflows of ₹23,223 crore in June 2025, marking a 162.26% year-on-year jump, according to ICRA Analytics, citing AMFI data. The surge reflects growing investor interest in hybrid schemes, which offer a mix of debt and equity to manage risk and returns during market turbulence.
Within the hybrid category, arbitrage funds led the pack, drawing Rs 15,585 crore. Multi-asset allocation funds followed with Rs 3,210 crore, while balanced advantage funds attracted Rs 1,886 crore. The trend indicates investors are turning to hybrid instruments for portfolio diversification amid ongoing volatility.
Overall, June was a robust month for the mutual fund industry. Total Assets Under Management (AUM) reached Rs 74.41 lakh crore, up from Rs 72.20 lakh crore in May and Rs 61.16 lakh crore in June 2024, signifying a 13.2% quarter-on-quarter rise.
Equity-oriented schemes continued their upward momentum, recording net inflows of Rs 23,587 crore, 24% higher than May 2025. Flexi-cap funds garnered Rs 5,733 crore, small-cap funds brought in Rs 4,024 crore, and mid-cap funds drew Rs 3,754 crore.
However, ELSS (Equity Linked Saving Schemes) witnessed a net outflow of Rs 556 crore, suggesting that seasonal tax-saving interest has declined.
Market sentiment was supported by strong index performances, Nifty 50 TRI gained 3.37% and Sensex TRI rose 2.98% during the month. This performance played a role in sustaining inflows across equity categories.
Debt mutual funds witnessed net outflows of Rs 1,711 crore in June, but the figure was significantly lower than May’s Rs 15,908 crore. Some debt categories remained resilient—short-duration funds recorded Rs 10,277 crore in inflows, money market funds added Rs 9,484 crore, and corporate bond funds saw Rs 7,124 crore in net additions. On the other hand, liquid funds posted heavy outflows of Rs 25,196 crore due to quarter-end redemptions.
Systematic Investment Plans (SIPs) continued to power retail participation, hitting a record Rs 27,269 crore in monthly contributions—up 28% from Rs 21,262 crore a year ago. The number of active SIP accounts stood at 9.19 crore at the end of June. ICRA Analytics attributes the SIP momentum to rising financial awareness, digital platforms, and consistent equity market returns.
Experts believe the mutual fund industry will sustain its growth trajectory, backed by stable SIP flows, broader participation, and favourable market conditions.