Equity mutual fund inflow surges 26% to Rs 28,973 crore in June

Equity-oriented mutual fund schemes attracted Rs 28,973 crore in June, a sharp surge of 26.5 per cent from the preceding month, driven by easing geopolitical tensions, expectations of supportive domestic macroeconomic conditions, and strong retail participation.

With this, net inflow into equity schemes reached to Rs 1.81 lakh crore in the first half of 2026, up 12 per cent from the Rs 1.61 lakh crore garnered in the same period of 2025.

Moreover, monthly SIP contributions rose to Rs 31,781 crore during the month under review, up from Rs 30,954 crore in May, according to data released by the Association of Mutual Funds in India (Amfi) on Friday.

Overall, the mutual fund industry’s net outflow narrowed to Rs 52,949 crore in June from an outflow of Rs 64,131 crore in the preceding month. Consequently, the industry’s asset base rose to Rs 82.22 lakh crore at the end of June from Rs 81.6 lakh crore a month earlier.

According to the data, net inflows into equity schemes stood at Rs 28,973 crore in June, compared with Rs 22,908 crore in May, which was the lowest level in a year.

The rebound indicates that investor confidence remains resilient despite ongoing global uncertainties and periodic market volatility.

“Improved market sentiment, expectations of supportive domestic macroeconomic conditions, and continued strength in retail participation helped support flows during the month,” Nehal Meshram, Senior Analyst, Morningstar Investment Research India, said.

Inflows in equities stood at Rs 38,440 crore in April, Rs 40,450 crore in March, Rs 25,978 crore in February and Rs 24,028 crore in January.

Within the equity category, mid-cap funds attracted the highest inflows at Rs 6,090 crore, followed by small-cap funds at Rs 5,602 crore and flexi cap funds at Rs 5,231 crore. Large-cap funds received an inflow of Rs 2,067 crore.

On the other hand, dividend yield funds and equity-linked savings schemes (ELSS) saw net outflows during the month.

Also, gold exchange-traded funds (ETFs) recorded a net inflow of Rs 3,443 crore in June against a net outflow of Rs 725 crore in May.

The sharp recovery suggests that the weakness witnessed in May was temporary and largely driven by tactical profit-booking. Moreover, it indicates renewed buying as investors capitalised on recent price corrections, Meshram said.

On a cumulative basis, gold ETFs attracted net inflows of Rs 37,319 crore during H1 CY2026, significantly higher than the Rs 8,021 crore recorded during H1 CY2025.

Debt-oriented schemes recorded a net outflow of Rs 1.09 lakh crore in June, following a withdrawal of Rs 96,948 crore in May. This was primarily due to heavy redemptions in ultra-short-term categories to meet predictable, seasonal quarter-end institutional liquidity requirements, said Umesh Sharma, CIO-Debt, The Wealth Company Mutual Fund.

Liquid fund redemptions worsened to Rs 42,293 crore from Rs 29,681 crore in May, while overnight fund outflows compressed to Rs 10,580 crore down from Rs 15,524 crore in May.