Mutual Funds: Large, Mid, Or Small Caps—Which Equity Schemes Pulled Most Inflows In June 2025?

Indian mutual funds attracted strong investments in June 2025, with investors showing a clear preference for equity schemes despite market volatility. 

According to AMFI data, equity-oriented funds reported net inflows of Rs 23,587 crore, outshining debt and hybrid categories by a wide margin.

Among equity funds, small-cap funds stood out, drawing Rs 4,024 crore in net inflows, slightly higher than mid-cap funds, which saw Rs 3,754 crore. In comparison, large-cap funds received Rs 1,694 crore, highlighting investors’ growing appetite for smaller, higher-growth companies, even though these categories have been more volatile.

Flexi cap funds—which can invest across market capitalisations—also gained traction, with Rs 5,733 crore of net investments, making them the single largest contributor among equity funds for the month. Sectoral and thematic funds, known for their focused bets on sectors like technology and healthcare, added Rs 476 crore, reflecting moderate but steady interest.

Hybrid funds, which blend equity and debt, saw a strong Rs 23,223 crore in net inflows, almost matching pure equity fund inflows. Among these, arbitrage funds stood out, attracting Rs 15,585 crore, showing many investors opted for lower-risk, tax-efficient strategies.

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Meanwhile, debt funds had a mixed month. Liquid funds posted heavy outflows of Rs 25,196 crore, as corporates withdrew money after quarter-end payouts.

However, other debt categories like money market funds (Rs 9,484 crore) and short-duration funds (Rs 10,277 crore) saw healthy inflows, suggesting investors still trust short-term debt to manage liquidity.

Another key trend was the launch of 20 new schemes, including 9 index funds, 6 ETFs, and fresh offerings in flexi cap and sectoral funds. Together, they mobilised Rs 1,986 crore, underlining rising demand for passive and thematic investments.

Overall, India’s mutual fund industry closed June with total assets under management at Rs 74.4 lakh crore, reflecting continued confidence in SIPs and lump-sum investments. Notably, even though the ELSS category saw outflows of Rs 556 crore, many other equity categories made up for the slack.