AMFI June data: Equity mutual fund inflows jump 26%, mid-cap, small-cap funds steal the show

June AMFI data: Investor appetite for equity mutual funds remained resilient in June despite heightened market volatility, with net inflows into equity-oriented schemes rising sharply from the previous month. According to data released by the Association of Mutual Funds in India (AMFI) on Friday, equity mutual funds attracted ₹28,973 crore in net inflows during June, marking a 26% month-on-month (MoM) increase from ₹22,908 crore in May.

While the mutual fund industry as a whole recorded a net outflow of ₹52,949 crore during the month, it was lower than the ₹64,131 crore outflow reported in May. The decline was largely due to a withdrawal of ₹1.09 lakh crore from debt-oriented schemes. Despite this, the industry's assets under management (AUM) increased to ₹82.22 lakh crore at the end of June from ₹81.6 lakh crore in the previous month.

The latest data also showed that equity inflows have remained healthy throughout 2026. Equity-oriented schemes received ₹38,440 crore in April, ₹40,450 crore in March, ₹25,978 crore in February and ₹24,028 crore in January.

Within the equity category, mid-cap funds attracted the highest inflows of ₹6,090 crore during June, followed by small-cap funds at ₹5,602 crore, flexi-cap funds at ₹5,231 crore and large-cap funds at ₹2,067 crore. On the other hand, dividend yield funds and equity-linked savings schemes (ELSS) continued to witness net outflows.

Investor interest also returned to gold exchange-traded funds (ETFs), which recorded a net inflow of ₹3,443 crore during June compared with a net outflow of ₹725 crore in May.

According to Nehal Meshram, Senior Analyst, Morningstar Investment Research India, the rebound in equity mutual fund inflows highlights the resilience of domestic investors despite persistent global uncertainties.

"Equity-oriented mutual fund categories witnessed a recovery in investor inflows during June 2026, garnering net inflows of ₹28,973 crore compared to ₹22,908 crore in May 2026, reflecting a 26.5% month-on-month increase. 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," Meshram said.

Meshram noted that the first half of calendar year 2026 also ended on a strong note, with cumulative net inflows into equity-oriented schemes reaching ₹1,80,778 crore, up around 12% from ₹1,60,943 crore mobilised during the first half of CY2025.

The expert said mid-cap and small-cap funds continued to dominate investor preference despite concerns around elevated valuations. During the first half of CY2026, these categories attracted cumulative inflows of around ₹30,279 crore and ₹30,527 crore, respectively.

He added that flexi-cap funds remained among the preferred categories with ₹5,231 crore in inflows, while large & mid-cap funds garnered ₹4,321 crore, reflecting investors' preference for diversified strategies that balance growth with stability. Sectoral and thematic funds also witnessed a recovery, attracting ₹1,469 crore compared with ₹648 crore in May.

Meanwhile, ELSS and Dividend Yield Funds remained the only categories to record net outflows. According to Meshram, continued outflows from ELSS reflect the increasing adoption of the new tax regime, which has reduced the appeal of tax-saving investment products.

The new fund offer (NFO) market also remained subdued during June, with only one equity fund being launched, raising around ₹87 crore.

"Overall, the recovery in June flows, coupled with the strong ₹1.8 lakh crore mobilisation during the first half of CY2026, highlights the resilience of domestic investor sentiment. The continued preference for diversified and growth-oriented categories suggests that investors remain constructive on India's long-term growth prospects while maint...