Equity mutual funds in India registered net inflows of Rs 42,702 crore in July, marking an 81 per cent increase from Rs 23,587 crore in June, according to data released by the Association of Mutual Funds in India. This surge was largely attributed to robust new fund offerings, which raised Rs 30,416 crore—the highest ever monthly NFO collection.
The mutual fund industry’s net assets under management rose to Rs 75.36 trillion by the end of July, up from Rs 74.40 trillion in June and Rs 72.19 trillion in May. Equity funds have now seen positive inflows for 53 consecutive months, with July’s gains spread across most categories.
Smallcap schemes led the momentum, attracting Rs 6,484 crore in July, a 61 per cent rise from Rs 4,024 crore in June. Largecap funds saw Rs 2,125 crore in inflows, up 25 per cent month-on-month, while mid-cap funds posted a 38 per cent increase. Flexicap funds drew Rs 7,654 crore, a 33.5 per cent jump, and sectoral and thematic funds garnered Rs 9,426 crore, up 15 per cent from June.
Retail investor engagement continued to grow, with total mutual fund folios rising to 24.57 crore in July from 24.13 crore in June. However, ELSS schemes recorded net outflows of Rs 368 crore, though this was lower than the Rs 556 crore withdrawn in June.
Hybrid funds saw improved inflows, while arbitrage funds experienced a decline. Open-ended debt funds posted net inflows of Rs 1,06,801 crore, with money market and liquid funds showing strong monthly gains.
Akhil Chaturvedi of Motilal Oswal Asset Management Company noted that growth exceeding 25 per cent was visible across categories, from largecap to flexicap to smallcap. He added that Indian retail investors are now seriously considering equities as a meaningful part of their portfolios.
