Equity mutual funds saw robust investor interest in June 2026, with net inflows rising 26.5% to ₹28,973 crore, led by mid-cap, small-cap and flexi-cap funds. While debt mutual funds witnessed outflows exceeding ₹1.09 lakh crore, strong inflows into hybrid funds and ETFs helped narrow the industry's overall net outflows, with total AUM rising to ₹82.22 lakh crore.
Equity-oriented mutual fund schemes witnessed a strong recovery in June 2026, with net inflows rising 26.5% month-on-month to ₹28,973.41 crore from ₹22,907.77 crore in May, according to AMFI data. Mid-cap, small-cap and flexi-cap funds remained the biggest contributors, while hybrid funds and exchange-traded funds (ETFs) also attracted healthy investments. However, debt-oriented schemes recorded net outflows of ₹1,09,053.65 crore, resulting in the mutual fund industry's overall net outflow of ₹52,948.78 crore, although this narrowed 17.3% from ₹64,021.17 crore in May.
Industry outflows narrow despite higher redemptions
Gross fund mobilisation increased 26.3% to ₹15.19 lakh crore in June from ₹12.03 lakh crore in May, while gross redemptions rose 24.1% to ₹15.72 lakh crore from ₹12.67 lakh crore. Since inflows grew faster than redemptions, overall net outflows reduced by around ₹11,072 crore. Open-ended schemes reported net outflows of ₹50,142.35 crore, down 20.2% from ₹62,848.15 crore, whereas closed-ended scheme outflows widened 140.8% to ₹2,806 crore, mainly due to fixed-term plan redemptions.
Equity funds see broad-based buying
Nine of the 11 equity fund categories recorded positive inflows. Mid-cap funds led with ₹6,090 crore, up 38.9% from May, followed by small-cap funds at ₹5,602 crore, a 13.3% increase. Flexi-cap funds attracted ₹5,231 crore, while large & mid-cap funds received ₹4,321 crore and multi-cap funds ₹3,070 crore. Large-cap schemes recorded inflows of ₹2,067 crore, up 29.8%.
Sectoral and thematic funds more than doubled their inflows to ₹1,469 crore from ₹648 crore. Focused funds attracted ₹1,118 crore, while value and contra funds received ₹687 crore. Dividend-yield funds continued to witness outflows of ₹49 crore, while ELSS funds reported withdrawals of ₹634 crore. Flexi-cap, mid-cap and small-cap schemes together accounted for ₹16,923 crore, or around 58% of total equity inflows.
Debt fund withdrawals exceed ₹1 lakh crore
Debt schemes recorded net outflows of ₹1,09,054 crore, 12.5% higher than May. Liquid funds saw the largest withdrawals at ₹42,293 crore, followed by low-duration funds at ₹16,484 crore and ultra-short-duration funds at ₹11,426 crore. Money market fund outflows moderated to ₹10,595 crore, while overnight fund withdrawals declined to ₹10,580 crore. Corporate bond funds reported outflows of ₹7,557 crore, while short-duration, dynamic bond and medium-to-long-duration funds also remained under pressure. Credit-risk funds attracted ₹248 crore, while floater funds reversed to an inflow of ₹452 crore.
Hybrid funds and ETFs attract investors
Hybrid fund inflows rose 22.1% to ₹12,892.76 crore. Arbitrage funds attracted ₹5,799 crore, while multi-asset allocation funds received ₹4,811 crore. Aggressive hybrid fund inflows surged to ₹2,121 crore and balanced advantage funds collected ₹553 crore. Equity savings funds were the only hybrid category to post net outflows of ₹495 crore.
Other schemes staged a sharp turnaround, with inflows jumping to ₹16,724.26 crore from ₹361.99 crore. Other ETFs attracted ₹13,238 crore after May outflows, while Gold ETFs received ₹3,443 crore. Overseas fund-of-funds collected ₹102 crore, whereas index funds recorded marginal outflows of ₹59 crore.
Better Understanding: Types of Mutual funds and Their different Categories
AUM rises to ₹82.22 lakh crore
The mutual fund industry's assets under management increased 0.8% to ₹82.22 lakh crore at the end of June from ₹81.58 lakh crore in May. Equity AUM rose 3.3% to ₹37.34 lakh crore, hybrid AUM increased 2.5% to ₹11.44 lakh crore, while debt AUM declined 4.8% to ₹17.38 lakh crore. Total mutual fund folios increased by 20.31 lakh to 27.86 crore.
Seven new fund offers mobilised ₹460 crore during June compared with ₹471 crore raised by 13 schemes in May. WhiteOak Capital Aggressive Hybrid Fund accounted for ₹310 crore, while The Wealth Company Large & Mid Cap Fund mobilised ₹87 crore. Overall, June reflected sustained investor preference for equity, hybrid and ETF categories despite continued pressure on debt fund flows.
