3 min readMumbaiJul 10, 2026 06:25 PM IST
First published on: Jul 10, 2026 at 06:25 PM IST
Inflows into equity mutual funds (MFs) rose 26% in June from the previous month, with contributions from systematic investment plans (SIPs) at a three-month high of Rs 31,781 crore. Overall net MF outflows from the overall mutual funds industry narrowed to Rs 52,949 crore from Rs 64,021 crore in May as more money poured into equity schemes, while gold exchange-traded funds (ETFs) saw a 65% month-on-month increase in flows.
Flows into ETFs rebounded during the month, especially for gold and silver ETFs, while those into hybrid mutual funds also jumped, signifying that investors preferred to diversify across schemes as the stock market remained volatile in June amid geopolitical uncertainties.
“June marked positive equity inflows for the 64th consecutive month. SIP contributions touched a record Rs 31,781 crore, reflecting growing investor confidence and the increasing adoption of disciplined, long-term investing,” said Venkat Chalasani, Association of Mutual Funds in India’s (AMFI) Chief Executive.
Assets under management (AUM) of the MF industry rose further to a new record of Rs 82.2 lakh crore as of June 30 from Rs 81.6 lakh crore on the last day of the previous month. Last month also saw the assets under control (AUC) of the MF industry, at Rs 76.41 lakh crore, surpassing that of foreign investors’ Rs 76.22 lakh crore for the first time. This indicates continued growth of the industry amidst heavy foreign outflows this year.
AUM represents the total value of all schemes managed by the industry, including factors such as accrued returns, while AUC only represents the total underlying assets held by an institution.
Gold rebounds, debt outflows continue
Equity inflows rose 26% MoM and 23% year-on-year to Rs 28,973 crore in June, with inflows into mid-cap funds – the most popular category – increased nearly 39%, while those into multi-cap, large, and mid-cap funds, focused funds, and value funds also rose by over 30%.
“The increase in inflows across large-cap, mid-cap, and small-cap funds suggests investors are participating across the market-cap spectrum rather than chasing a single pocket of the market,” said Suranjana Borthakhur, head of distribution and strategic alliances at Mirae Asset Investment Managers (India).
On the debt side, outflows widened to Rs 1.09 lakh crore from Rs 96,949 crore in May. In June 2025, debt outflows were a mere Rs 1,711 crore. The rising debt scheme outflows is primarily due to exits from liquid, low-duration, and short-duration funds, which are often used by companies and institutional players to park their money safely in the short term.
June was a good month for ETFs, with those related to gold seeing net inflows of Rs 3,443 crore after the outflow of Rs 725 crore in May.
The rebound in gold ETF flows suggests investors continue to value gold as an effective portfolio diversifier amid global uncertainty, according to Rohit Sarin, co-founder of wealth management firm Client Associates. Silver ETFs also saw inflows of Rs 4,287 crore compared to an outflow of Rs 2,113 crore in the previous month.
The fall in gold prices from its peak in late January may have played a part in the revival of precious metal ETF inflows, giving investors a good entry point with potential for future returns.
Gold ETFs are backed by physical gold and are thus directly linked to gold prices.
Flows into ETFs rebounded during the month, especially for gold and silver ETFs, while those into hybrid mutual funds also jumped. (Photo: Freepik) 
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