Equity MF Inflows Hit Record High in July; Industry AUM Tops ₹75 Trillion

Equity mutual funds registered their highest-ever monthly net inflow in July 2025, rising to ₹427.02 billion. The 81% month-on-month jump in total equity scheme inflows came despite global risk aversion triggered by uncertainty over US trade policy following tariff announcements by Donald Trump.

The surge was partly driven by 10 new equity launches, which mobilised ₹89.97 billion. Of this, ₹74.04 billion came from seven new schemes in the sectoral/thematic category.

Among equity categories, sectoral/thematic funds attracted the highest inflows at ₹94.26 billion. Flexi-cap funds followed with ₹76.54 billion, and small-cap funds drew ₹64.84 billion. Mid-cap and large & mid-cap funds also recorded inflows exceeding ₹50 billion each. The total net assets under management for equity schemes reached ₹33.27 trillion at the end of July.

Systematic Investment Plan flows continued to rise, with monthly contributions hitting an all-time high of ₹284.64 billion, up 4% from ₹272.69 billion in June. The number of contributing SIP accounts climbed to 91.1 million.

Hybrid schemes reported net inflows of ₹208.79 billion, led by balanced advantage funds, multi-asset allocation funds, and arbitrage funds. Solution-oriented schemes, including retirement and children’s plans, saw net inflows of ₹2.82 billion.

In the passive segment, index funds and ETFs (excluding gold ETFs) together garnered ₹82.59 billion in net inflows. Gold ETFs received ₹12.56 billion, indicating continued demand for the metal as a diversification tool.

The mutual fund industry’s total assets under management rose to ₹75.35 trillion in July, supported by strong net inflows across equity and hybrid categories as well as market gains. Despite selective profit booking in certain debt categories, the data from the Association of Mutual Funds in India points to sustained retail and institutional participation.

July’s record equity inflows, alongside the strength in SIP contributions and hybrid fund mobilisation, suggest that domestic investors remain engaged in equity markets even amid global uncertainties, balancing sectoral opportunities with diversified allocation strategies.