Hybrid Funds witness record breaking net inflows on the back of a balanced risk-reward profile amid volatile market conditions
June 2025 marked a strong month for the Indian mutual fund industry, with record-high inflows and robust investor participation across equity, hybrid, and SIP segments. Data from the Association of Mutual Funds in India (AMFI) showed that the industry’s total Assets Under Management (AUM) surged to Rs. 74.41 lakh crore, reflecting a 13.2% quarter-on-quarter growth, supported by bullish equity markets and sustained retail interest.
Equity-oriented schemes continued to attract significant investor interest. Total net inflows in the equity-oriented schemes stood at Rs. 23,587 crore, 24% higher than those in May 2025. Within the equity space, flexi-cap, small-cap and mid-cap funds witnessed net inflows of Rs. 5,733 crores, Rs. 4,024 crore and Rs. 3,754 crores, respectively. Meanwhile, ELSS funds recorded a net outflow of Rs. 556 crores, indicating waning tax-season demand.
The strong performance of benchmark indices like Nifty 50 TRI (+3.37%) and Sensex TRI (+2.98%) further boosted investor confidence.
Debt funds saw moderate outflows in June, compared to May. Net outflow of debt schemes stood at Rs. 1,711 crore (compared to net outflow of Rs. 15,908 crores in May). During the month, short-duration, money market and corporate bond funds witnessed net inflows of Rs. 10,277 crore, Rs. 9,484 crore and Rs. 7,124 crore, respectively. Meanwhile, liquid funds saw a net outflow of Rs. 25,196 crore due to quarter-end withdrawals.
Hybrid funds witnessed record breaking net inflows of Rs. 23,223 crore with arbitrage, multi asset allocation and balanced advantage funds being the key contributors (arbitrage, multi asset allocation and balanced advantage funds recorded net inflow of Rs.15,585 crore, Rs. 3,210 crore and Rs. 1,886 crore, respectively). Investors favoured hybrid schemes for their balanced risk-reward profile amid market volatility.
Systematic Investment Plans (SIPs) remained a pillar of retail investment with monthly contribution touching new all-time high of Rs. 27,269 crores. There are 9.19 crore active SIP accounts as on Jun 30, 2025. The growth drivers for the SIP are predominantly rising financial literacy, consistent returns from equity markets and ease of investing via digital platforms. SIPs continue to be the preferred mode for long-term wealth creation, especially among young and first-time investors.
June 2025 showcased the resilience and growth potential of the Indian mutual fund industry. With strong SIP momentum, diversified inflows across categories, and favourable market conditions, the industry is well-positioned for continued expansion in the second half of the calendar year.