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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. #MutualFundData | June #SIP Inflows At ₹27,269 Cr Vs ₹26,688 Cr Inflow (MoM) pic.twitter.com/iyaGuNXBdV

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Sandeep Bagla, CEO of TRUST Mutual Fund on midcap earnings

The next two years’ earnings forecast, at the index levels, the midcap earnings are slated to grow by about 15%, smallcap by 13% for the next two years, while largecap is expected to grow only in the smaller single digits. So, midcaps, if growth is considered, midcaps are not as overvalued as one thinks. So, that by experience and by performance, it is getting reinstated in the consumers’ mind and in investors’ mind also, and people are investing in midcaps and smallcaps and if the growth materialises, then these stocks will start looking cheap again, if not cheap, more reasonably valued.

In June, net equity inflows rose sharply to ₹23,568 crore, compared to ₹18,994.56 crore in May. That’s a 24% month-on-month increase.

Bandhan Mutual Fund has announced the launch of the Bandhan Multi-Factor Fund, an open-ended equity scheme that uses a quantitative model blending momentum, value, quality, and low volatility factors.

ICICI Prudential Mutual Fund has launched the ICICI Prudential Active Momentum Fund, an open-ended equity scheme designed to capitalise on persistent price and earnings momentum trends in the Indian equity market.

Rising global volatility and geopolitical concerns dented investor confidence in May 2025. This led to a sharp drop in equity mutual fund inflows. Net inflows into equity-oriented schemes fell 21.66% month-on-month and 45.20% year-on-year to ₹19,013 crore, ICRA Analytics said, citing data from the Association of Mutual Funds in India (AMFI).

Hybrid mutual funds continued to attract strong investor interest in May, following a sharp rebound in April. The category saw net inflows of ₹20,765 crore in May, a 46% increase over April’s ₹14,247 crore, according to data from the Association of Mutual Funds in India (AMFI).

Open-ended debt mutual funds saw net outflows of ₹15,908 crore in May 2025, reversing the strong inflows of ₹2.19 lakh crore recorded in April. The pullback was mainly driven by significant redemptions in the liquid and overnight fund categories.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.