Equity MF Inflows Rise To ₹28,973 Crore In June; Mid & Small-Cap Funds Lead Gains

Equity mutual fund investments witnessed a recovery in June, with net inflows rising to ₹28,973 crore from ₹22,908 crore in May, according to data released by the Association of Mutual Funds in India (AMFI).

The increase indicates improving investor confidence after a relatively weaker performance in the previous month.

Despite the monthly improvement, equity inflows remained lower than the levels recorded in March and April, when investments crossed ₹40,000 crore and ₹38,000 crore, respectively.

The assets under management (AUM) of equity mutual fund schemes also increased to ₹37.34 lakh crore in June from ₹36.14 lakh crore in May.

Mid-cap funds continued to attract the highest investor interest, receiving inflows of ₹6,090 crore during the month.

Small-cap funds followed with investments of ₹5,602 crore, while flexi-cap funds attracted ₹5,231 crore. Large and mid-cap funds received ₹4,321 crore, and multi-cap funds saw inflows of ₹3,070 crore.

The continued preference for mid-cap and small-cap funds remained a key trend, with both categories together attracting nearly ₹11,692 crore, accounting for more than 40% of total equity inflows during June.

Large-cap funds also witnessed improved demand, with inflows increasing to ₹2,067 crore from ₹1,593 crore in May.

Sectoral and thematic funds recorded inflows of ₹1,469 crore, more than double the previous month, although they remained below the levels seen earlier in the year. Equity Linked Savings Scheme (ELSS) funds continued to face withdrawals.

Hybrid mutual funds also maintained their appeal, attracting net inflows of ₹12,893 crore compared with ₹10,560 crore in May.

Gold ETFs witnessed a strong turnaround during the month. After recording outflows of ₹725 crore in May, the category attracted fresh investments of ₹3,443 crore in June, reversing the earlier trend.

On the other hand, debt mutual funds continued to face investor withdrawals. The category recorded net outflows of ₹1.09 lakh crore in June, higher than the ₹96,949 crore withdrawal seen in May.

Debt fund AUM declined to ₹17.38 lakh crore from ₹18.25 lakh crore during the period.

Liquid funds saw the highest withdrawals at ₹42,293 crore, followed by low-duration funds at ₹16,484 crore and ultra-short-duration funds at ₹11,426 crore. Money market and overnight funds also witnessed significant outflows.

Only a few debt categories, including floater funds and credit risk funds, managed to attract fresh investments. Overall, June reflected stronger equity participation but continued caution among investors towards debt schemes.