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Debt mutual funds reported net outflows of ₹1,711 crore in June 2025. Although still negative, this was significantly lower than the ₹15,908 crore outflow seen in May, according to Association of Mutual Funds in India (AMFI) data.

Systematic investment plans (SIPs) continued to show decent momentum in June. The monthly inflows rose to an all-time high of ₹27,269 crore, up from ₹26,688 crore in May, according to data released by the Association of Mutual Funds in India (AMFI).

The MF industry in India continues to show a strong growth – average net MF AUM for Jun’25 is at ₹74.8 lakh crs, a 3.6% (₹2.61 lakh crs) growth over the previous month. Interestingly, two-thirds (65.7%) of this growth comes from Equity & Hybrid schemes, representing a growing interest in investing in Indian equity. This should help build long-term wealth for investors. However, 25% of the monthly growth is in Mid, Small & Sectoral / Thematic schemes, which are relatively higher risk. We suggest investors diversify and allocate across categories and asset classes, in line with their risk profile.

Gold Exchange Traded Funds (ETFs) saw strong investor interest in June 2025. It recorded net inflows of ₹2,080.85 crore, the highest monthly figure since January, according to Association of Mutual Funds in India (AMFI) data. Inflows rose sharply from ₹291.91 crore in May.

Ankur Punj MD & National Head at Equirus Wealth

Equity mutual fund net sales rose by 19% in June 2025, reaching ₹23,587 crore, up from ₹19,013 crore in May. This increase signals strong investor sentiment and a shift towards lower outflows from equity-oriented schemes. He remains optimistic about the Indian economy and believes that equities are poised for sustainable growth over the medium to long term.

The mutual fund industry’s AUM crossed ₹74 lakh crore in June 2025, setting a new milestone. This growth continues to be powered by strong retail participation and the steady rise in SIP inflows, which stood at ₹27,269 crore for the month.

The number of contributing SIP accounts also touched an all-time high of 8.64 crore, underlining the growing trust in mutual funds as a disciplined investment vehicle.

Equity inflows came in at ₹23,587 crore, marking the 52nd consecutive month of positive flows. While market volatility has made some investors cautious, we’re also witnessing a healthy shift towards hybrid and arbitrage funds a trend that shows maturing investor behaviour and a preference for balanced risk strategies in uncertain times.

We are confident that our emphasis on establishing a robust mutual fund framework, coupled with standardised disclosure protocols and ongoing investor education initiatives, will propel the industry’s growth and success.

Our focus remains on deepening investor awareness and helping savers become long-term wealth creators. India’s economic fundamentals remain strong, and we continue to encourage investors to stay committed to their financial goals.

Nehal Meshram, Senior Analyst – Manager Research at Morningstar Investment Research India, noted that Gilt and Long Duration Funds saw outflows in June 2025.

According to Meshram, these outflows occurred despite expectations of a rate cut cycle, highlighting investor caution due to:

Despite recent outflows, Long Duration Funds attracted ₹5,928 crore over the past six months, indicating selective interest from investors seeking duration exposure.

If rate cut expectations strengthen, these categories could see a pickup in inflows going forward.

Nehal Meshram, Senior Analyst – Manager Research at Morningstar Investment Research India, noted that several fixed income categories saw strong inflows in June 2025. Short Duration Funds recorded the highest monthly inflow at ₹10,276 crore, reflecting increased investor confidence in short-term strategies.

Money Market Funds also maintained strong momentum, with ₹9,484 crore flowing in during the month and over ₹52,000 crore in the last quarter, making it the top-performing segment in the fixed income space. Corporate Bond Funds attracted ₹7,124 crore, supported by appealing yields and improving credit outlook.

Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal AMC, noted strong month-on-month growth in net equity flows, rising by around ₹5,000 crore.

Systematic Investment Plan (SIP) flows also hit a record high of ₹27,300 crore, increasing by nearly ₹600 crore. He attributed this growth to growing confidence among retail investors, viewing it as a positive sign for both the mutual fund industry and Indian markets.

Open-ended debt mutual funds saw muted activity in June 2025, registering net outflows of ₹1,711 crore, a sharp moderation from the steep ₹15,908 crore outflow in May. This stabilisation was supported by recovery in several low and medium-duration categories, even as institutional-heavy segments like Overnight and Liquid Funds continued to witness redemption pressures. These two categories together saw about ₹33,350 crore in outflows during the month, likely driven by quarter-end liquidity needs and treasury adjustments. Notably, this also capped the quarterly tally for these categories, though Liquid Funds still ended the Apr-Jun 2025 quarter with the highest inflows at ₹53,255 crore.

Mutual fund inflows remained strong in June 2025, with equity mutual funds seeing a net inflow of ₹23,568 crore, up 24% from ₹18,994.56 crore in May. Data from the Association of Mutual Funds in India (AMFI) highlights several factors behind this rise: Broad-based equity market rally, Strong SIP participation, Increased flows into flexi-cap funds, Gold ETFs attract diversification-seeking investors, Arbitrage fund momentum, Search for yield in debt categories.

Equity-oriented mutual funds witnessed a notable revival in June 2025, registering net inflows of ₹23,587 crore, up from ₹19,013 crore in May, effectively breaking a five-month declining trend. This rebound underscores a resurgence in investor confidence, supported by a strong equity market performance across segments. Broad-based market gains, including a surge in the Nifty 50 index and even stronger rallies in the mid and small-cap indices, helped reignite interest in equity investments.

Flows remained robust across categories, with flexi-cap, mid-cap, and small-cap funds attracting the highest investor interest. The inflows were driven by improved market sentiment, attractive valuations after recent corrections, and a portfolio reallocation toward equities amid subdued returns in other asset classes. The continued strength of systematic investment plans (SIPs) also played a key role, reflecting retail investors’ disciplined participation. June’s inflow marked a potential turning point, highlighting the enduring structural confidence in Indian equities and a growing risk appetite among investors.

While multinational corporations and promoters have been busy trimming their stakes and cashing big pay-outs in India, domestic institutional investors (DIIs), primarily led by mutual funds have steadily raised their shareholding in public companies averaging over 25% in some of the listed players.

Systematic investment plans (SIPs) continued to show decent momentum in June 2025. The monthly inflows rose to an all-time high of ₹27,269 crore, up from ₹26,688 crore in May, according to data released by the Association of Mutual Funds in India (AMFI).

Sandeep Bagla, CEO of TRUST Mutual Fund, said equity fund flows remain strong, supported by steady SIP inflows and a surge in new fund offerings (NFOs). He noted that recent market performance, liquidity conditions, and active distributor engagement are key factors driving investments. With around 15 NFOs set to launch, he expects retail mobilisation to remain strong this month. NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.