Equity MF inflows hit record ₹42,702 crore; AUM crosses ₹75 trillion

Business Standard

a day ago

Net inflows into equity mutual fund (MF) schemes scaled a record high in July as the market correction and a slew of new fund offerings (NFOs) boosted lumpsum collections.
Active equity schemes garnered a net Rs 42,702 crore in July, surpassing the previous high of Rs 41,156 crore in December 2024.
Systematic investment plan (SIP) inflows continued to scale new peaks, rising over 4 per cent month-on-month (MoM) to Rs 28,464 crore.
'Equity MFs recorded their highest-ever monthly inflow of Rs 42,702 crore. SIP contributions hit a new record of Rs 28,464 crore, and contributing accounts grew 5.4 per cent to 91.1 million — clear evidence of disciplined investing even amid volatility,' said Venkat N Chalasani, chief executive, Association of Mutual Funds in India (Amfi).
After the December high, equity funds witnessed declines for five consecutive months amid rising market uncertainty. Net inflows, which picked up for the first time in June, stood at just Rs 23,587 crore last month.
The strong inflows across scheme segments pushed the total industry assets past Rs 75 trillion for the first time. Assets under management (AUM) rose 1.3 per cent MoM to Rs 75.4 trillion, according to Amfi data.
'With the AUM going past Rs 75 trillion, we are on the right track towards achieving the Rs 100 trillion goal as an industry. In a heightened period of uncertainty, this is a testament to the resilience and maturity of our markets and investors alike,' said A Balasubramanian, managing director and chief executive officer, Aditya Birla Sun Life AMC.
Investors poured in a net Rs 1 trillion into debt funds and nearly Rs 21,000 crore into hybrid schemes. Passive funds attracted Rs 8,259 crore.
NFO collections surged over 15-fold MoM in July to Rs 30,416 crore, supporting inflows across categories. Debt schemes alone garnered Rs 19,000 crore through NFOs.
Equity schemes recorded NFO collections of nearly Rs 9,000 crore, with most of the money going into seven sectoral and thematic funds. Inflows into existing schemes also grew during the month.
Experts attributed the surge in inflows — particularly in the sectoral and small-cap categories — to investors seeking higher returns.
'With equity inflows accelerating — especially into small-, mid-, and sectoral/thematic funds — investors are clearly seeking higher-return, growth-aligned segments despite volatility risks. The spike in equity inflows could also be fuelled by tactical responses to macro triggers, such as dips due to trade tensions or subdued earnings outlooks. Sustaining this level of interest may depend on whether markets continue to display similar favourable sentiment,' said Ankur Punj, managing director and national head, Equirus Wealth.
The domestic equity markets faced turbulence in July, breaking a four-month winning streak. Both the Nifty and the Sensex ended July down about 3 per cent. The broader Nifty Smallcap 100 and Nifty Midcap 100 indices fell 6.7 per cent and 4 per cent, respectively. During the preceding four months, both indices had risen over 20 per cent each.