Equity Mutual Fund Inflows Fall 15% To ₹24,697 Crore In July, Small-Cap Funds Hit Record High

Equity mutual fund inflows moderated in July, declining 15% to ₹24,697 crore from ₹28,973 crore in June, according to industry data. Despite the overall slowdown, small-cap funds continued to attract strong investor interest, recording their highest-ever monthly inflow.

Small-cap funds received ₹7,767 crore during the month, followed by mid-cap funds with inflows of ₹6,192 crore. Flexicap funds attracted ₹4,709 crore, while large and mid-cap funds and multicap funds received ₹3,425 crore and ₹3,227 crore, respectively.

Small-cap funds lead equity inflows

Among equity fund categories, small-cap schemes recorded the highest month-on-month growth in inflows at 39%. Multicap funds saw a 5% increase, while focused funds witnessed a sharp 43% decline in inflows.

The continued preference for small-cap and mid-cap funds indicates sustained investor appetite for higher-growth segments despite market volatility.

Debt mutual funds saw a strong recovery in July, receiving inflows of ₹1.87 lakh crore. This reversed the combined outflow of ₹2.06 lakh crore recorded during the previous two months. In July 2025, debt funds had received inflows of ₹1.06 lakh crore.

Among 16 debt fund categories, seven reported inflows. Liquid funds accounted for the highest inflow at ₹1.19 lakh crore, followed by overnight funds at ₹40,412 crore and money market funds at ₹21,180 crore. Corporate bond funds recorded the highest outflow at ₹784 crore, while long-duration funds saw withdrawals of ₹618 crore.

Hybrid and passive fund inflows moderate

Hybrid mutual fund inflows declined 11% month-on-month to ₹11,490 crore in July from ₹12,892 crore in June. Compared with July 2025, inflows fell 45% from ₹20,879 crore.

Among hybrid categories, arbitrage funds attracted the highest investment at ₹6,502 crore, followed by multi-asset allocation funds at ₹3,753 crore and aggressive hybrid funds at ₹1,986 crore.

Equity savings funds recorded the highest outflow among hybrid schemes at ₹477 crore, while dynamic asset allocation funds and conservative hybrid funds also witnessed withdrawals.

Other schemes, including index funds and exchange-traded funds (ETFs), saw inflows decline 25% to ₹12,517 crore in July from ₹16,724 crore in June. Other ETFs received the highest inflows at ₹9,512 crore, followed by gold ETFs and index funds.