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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

— CNBC-TV18 (@CNBCTV18Live) July 9, 2025

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.

Inflows into large, mid, and small-cap mutual funds fell in May, as investors appeared to take a breather after months of steady allocations across equity segments.

Inflows into new fund offers (NFOs) jumped by over 1,000% month-on-month in May to ₹4,170 crore, marking the highest level since January.

Passive mutual funds witnessed net inflows for the 55th consecutive month in May, according to data from the Association of Mutual Funds in India (AMFI). The category, which includes exchange-traded funds (ETFs), index funds, and fund-of-funds investing in passive strategies, continues to grow steadily.

Systematic Investment Plan (SIP) contributions touched an all-time high of ₹26,688 crore in May 2025, as per data from the Association of Mutual Funds in India (AMFI). This marked the highest monthly SIP inflow on record. The number of SIP accounts contributing also rose to an all-time high of 8.56 crore.

Net inflows into equity mutual funds stood at ₹18,994.56 crore in May, down 21.7% from ₹24,253 crore in April, according to data released by the Association of Mutual Funds in India (AMFI). This was the lowest level of equity inflows since April 2024.

SBI Mutual Fund has launched the SBI Nifty100 Low Volatility 30 Index Fund, an open-ended scheme that tracks the Nifty100 Low Volatility 30 Index. The New Fund Offer (NFO) will remain open till July 22.

AMFI will release mutual fund data for June 2025 today, and investors must be waiting to see how fund flows shaped up during the month.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.