Record-Breaking Surge: Indian Equity Mutual Funds See 80% Inflow Uptick

In a remarkable turn, the equity mutual funds sector in India reported a significant 80% surge in inflows in July 2025, marking an all-time high of Rs 42,672 crore, according to the Association of Mutual Funds in India (AMFI). The previous month's inflows stood at Rs 23,568 crore.

Notably, a major portion of the inflows, Rs 30,416 crore, stemmed from new fund offerings. Small Cap Funds led the charge with Rs 6,484 crore, showcasing investor appetite for high-growth potential ventures, despite inherent risks. Mid Cap Funds registered Rs 5,182 crore in inflows, while Large & Mid Cap Funds accumulated Rs 5,035 crore.

Investors continued to favor Flexi Cap Funds with Rs 7,654 crore in inflows, exploiting the flexibility of these schemes to allocate investments across different cap segments. Sectoral and Thematic Funds attracted Rs 9,426 crore, reflecting heightened interest in specific sectors like technology and infrastructure.

However, the Equity Linked Savings Scheme (ELSS) faced outflows amounting to Rs 368 crore. Manish Mehta of Kotak Mahindra AMC attributed the inflow surge to new fund offers and a robust SIP culture among domestic investors. The total assets under equity management climbed to Rs 33.28 lakh crore, while the broader mutual fund industry's AUM surpassed Rs 75 lakh crore, fueled by consistent contributions across various fund types.

(With inputs from agencies.)