Investor sentiment towards equity mutual funds in India showed a strong recovery in June 2026, with net inflows into actively managed schemes reaching Rs 28,973.41 crore. This marks a substantial increase from May's Rs 22,907.77 crore, which had been the lowest monthly inflow of the year.
The latest data from the Association of Mutual Funds in India (AMFI) highlights a broad-based improvement in fresh investments across various equity fund categories, alongside a continued surge in Systematic Investment Plan (SIP) contributions.
Mid-Cap Funds Lead Equity Inflow Surge
Mid-cap funds were the primary beneficiaries of this renewed investor interest, attracting Rs 6,090.17 crore in net inflows during June, a notable jump from Rs 4,385.06 crore in May. Flexi-cap funds also remained popular, garnering Rs 5,231.31 crore, up from Rs 4,945.57 crore the previous month.
Large-cap funds saw a significant pickup, with inflows rising to Rs 2,067.48 crore from Rs 1,592.93 crore in May, suggesting a cautious but growing allocation to more stable equity segments. Small-cap funds continued to attract healthy flows of Rs 5,601.96 crore, despite a slight moderation from May's Rs 6,263.56 crore.
Suranjana Borthakhur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), commented on the data: “June’s AMFI data reinforces that investor confidence remains intact despite intermittent market volatility. Equity inflows strengthened to ₹28,973 crore from ₹22,908 crore in May, while industry AUM touched a fresh high of ₹82.22 lakh crore. 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. Mid Cap and Small Cap continued to attract healthy flows of over ₹6,090 crore and ₹5,602 crore respectively, indicating sustained conviction in India’s long-term growth story.”
Additionally, sectoral and thematic funds nearly doubled their inflows to Rs 1,469.26 crore from Rs 647.87 crore, reflecting renewed interest in specific investment themes.
SIP Contributions Reach New Heights
Retail participation through SIPs demonstrated remarkable resilience, with monthly contributions climbing to Rs 31,781 crore in June. This represents a 2.7% increase from Rs 30,954 crore in May and extends the streak of monthly collections above or near Rs 31,000 crore for the fifth consecutive month.
Debt Funds Face Continued Outflows, Passive Funds Rebound
In contrast to equity schemes, debt mutual funds continued to experience pressure, with investors withdrawing Rs 1.09 lakh crore in June, an increase from Rs 96,948.51 crore in May. Liquid funds recorded the largest outflow at Rs 42,293.29 crore.
However, hybrid mutual funds saw net inflows of Rs 12,892.76 crore, led by arbitrage funds with Rs 5,799 crore. Passive investment products, including ETFs, index funds, and fund of funds (FoFs), witnessed a sharp improvement, receiving Rs 16,724 crore in net inflows compared to just Rs 361 crore in May. Notably, Gold ETFs staged a strong comeback, attracting Rs 3,443.23 crore after experiencing outflows in the prior month.
The mutual fund industry's total assets under management (AUM) saw a 1% month-on-month increase, reaching Rs 82.05 lakh crore in June from Rs 81.38 lakh crore in May, underscoring the overall growth in the sector despite varied performances across categories.