Broad-based equity market rally
Market performance across segments lifted investor sentiment. The Nifty 50 index gained in June, while mid- and small-cap indices outperformed, drawing investors back to equity schemes after a five-month slowdown.
Strong SIP participation
Systematic Investment Plan (SIP) inflows rose to ₹27,269 crore from ₹26,688 crore in May. The number of SIP accounts grew to 91.9 million, with 86.4 million accounts actively contributing during the month.
Increased flows into flexi-cap funds
Flexi-cap funds attracted ₹5,700 crore in inflows. The category is gaining ground as one of the largest by AUM, now at ₹4.8 lakh crore.
Investor preference has shifted toward this flexible allocation strategy over mid- and small-cap schemes, according to Tata Asset Management’s Anand Vardarajan.
Gold ETFs attract diversification-seeking investors
Gold Exchange-Traded Funds (ETFs) saw inflows of ₹2,080.9 crore in June, up from ₹292 crore in May. Rising gold prices and the appeal of diversification contributed to this increase.
Arbitrage fund momentum
Arbitrage funds recorded ₹15,500 crore in inflows in June. The category has collected ₹43,000 crore in the first three months of FY26, nearing last year’s full-year figure of ₹50,000 crore.
Search for yield in debt categories
Corporate bond funds saw inflows of ₹7,124.50 crore. Investors preferred short- to medium-duration debt instruments, balancing the need for yields and capital preservation.
Himanshu Srivastava, Associate Director, Morningstar India, said the inflows were supported by better valuations, broad-based market performance, and portfolio reallocations amid subdued returns from other asset classes.
Total mutual fund industry AUM rose to ₹74.40 lakh crore in June, compared to ₹72.20 lakh crore in May.
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(Edited by : Amrita)
First Published: Jul 9, 2025 12:17 PM IST