Mutual Funds: 24% surge in equity inflows at Rs 23,587 cr in June

India’s mutual fund industry witnessed robust momentum in June, with net equity inflows rebounding sharply after a dip in May, data from the Association of Mutual Funds in India (AMFI) showed on Wednesday.

Net inflows into equity mutual funds jumped to Rs 23,568 crore in June, marking a 24% rise from Rs 18,994.56 crore in May. This recovery comes after May saw equity inflows drop to their lowest levels since April 2024, falling 21.7% month-on-month from Rs 24,253 crore in April.

Of the 11 equity mutual fund sub-categories, every segment saw inflows in June, with the exception of ELSS funds. Flexi-cap funds attracted the highest interest, recording net inflows of Rs 5,733 crore, while small-cap funds saw net inflows of Rs 4,025 crore. However, thematic funds witnessed a significant slowdown, with net inflows dropping to Rs 476 crore in June from Rs 2,052 crore in May.

Arbitrage funds recorded strong inflows of Rs 15,585 crore. Gold ETFs continued to gain traction, bringing in net inflows of Rs 2,081 crore, pushing their assets under management (AUM) to Rs 64,777 crore as of June 30.

The debt segment presented a mixed picture. While corporate bond funds garnered Rs 7,124 crore and short-duration funds attracted Rs 10,277 crore, open-ended debt funds overall saw net outflows of ₹1,711 crore. Liquid funds faced hefty outflows amounting to Rs 25,196 crore in June.

Hybrid funds enjoyed robust investor interest, registering net inflows of Rs 23,223 crore, with AUM rising 3.8% to Rs 9.92 trillion.

Overall, the mutual fund industry’s AUM climbed 3% month-on-month to Rs 74.41 trillion as of June 30, up from Rs 72.20 trillion at the end of May. Industry-wide net inflows totaled Rs 49,095 crore in June, significantly higher than Rs 29,108 crore in May, underscoring renewed investor confidence across segments.

Debt mutual funds recorded net outflows of ₹1,711 crore in June, narrowing from outflows of ₹15,908 crore in May. Out of 16 debt fund sub-categories, eight posted net inflows, while the remaining eight witnessed outflows.

Short-duration funds attracted the highest inflows at ₹10,276 crore, followed by money market funds with ₹9,484 crore. Dynamic bond funds saw the smallest inflows, totaling just ₹44 crore in June.

On the other hand, liquid funds faced the largest outflows, with ₹25,196 crore exiting in June compared to an inflow of ₹40,205 crore in May. Overnight funds registered outflows of ₹8,154 crore, while medium duration funds saw the smallest outflow at ₹60.98 crore.