Daijiworld Media Network - New Delhi
New Delhi, Jul 23: The Indian mutual fund industry witnessed a remarkable surge in June 2025, propelled by robust investor participation and strong market momentum. According to a report by ICRA Analytics, citing data from the Association of Mutual Funds in India (AMFI), total Assets Under Management (AUM) soared to Rs 74.41 lakh crore. This marks a 13.2% rise quarter-on-quarter and a 22% year-on-year increase, up from Rs 72.20 lakh crore in May 2025 and Rs 61.16 lakh crore in June 2024.
Investor sentiment remained upbeat, with significant inflows recorded in hybrid schemes, which offered a balanced risk-reward option during a volatile market phase. Hybrid funds saw record-breaking net inflows of Rs 23,223 crore, largely driven by arbitrage funds which contributed Rs 15,585 crore, followed by Rs 3,210 crore in multi-asset allocation funds and Rs 1,886 crore in balanced advantage funds.
Equity-oriented mutual funds also registered strong net inflows of Rs 23,587 crore in June, reflecting a 24% increase over May. Among the equity categories, flexi-cap funds attracted Rs 5,733 crore, small-cap funds Rs 4,024 crore, and mid-cap funds Rs 3,754 crore. However, Equity-Linked Savings Schemes (ELSS) recorded a net outflow of Rs 556 crore, likely due to the seasonal drop in tax-saving investments post the financial year-end.
Systematic Investment Plans (SIPs) continued to be a preferred route for long-term investing, particularly among retail and first-time investors. Monthly SIP contributions reached an all-time high of Rs 27,269 crore, up 28% from Rs 21,262 crore a year earlier. As of June 30, 2025, the number of active SIP accounts stood at 9.19 crore, highlighting the growing retail footprint in the mutual fund space.
Fixed income categories presented a mixed picture. Short-duration funds saw net inflows of Rs 10,277 crore, money market funds received Rs 9,484 crore, and corporate bond funds attracted Rs 7,124 crore. In contrast, liquid funds witnessed significant net outflows of Rs 25,196 crore, primarily due to institutional withdrawals at the quarter’s close.
The positive performance of benchmark indices such as the Nifty 50 and Sensex also contributed to elevated investor confidence. With growing retail participation and favourable market conditions, the mutual fund industry appears well-positioned for continued expansion in the coming months.