MF equity inflows jump 26% even as equity remains volatile

Inflows into equity mutual funds increased 26 per cent to ₹28,973 crore against ₹22,908 crore logged in the same period last year, even as the equity markets remained most volatile with upward bias.

Similarly, gold exchange traded funds also attracted investors interest and attracted investment of ₹3,443 crore against an outflow of ₹725 crore in the previous month. Investment in silver jumped to ₹4,286 crore against an outflow of ₹2,133 crore in May, according to the Association of Mutual Funds in India data released on Friday.

Among equity schemes, mid and small cap schemes hogged the limelight with inflow of ₹6,090 crore ( ₹4,385 crore) and ₹5,602 crore ( ₹4,946 crore).

Systematic Investment Plan registered an inflow of ₹31,781 crore ( ₹30,954 crore) with the contribution accounts increasing to 9.78 crore (9.64 crore).

The debt funds recorded a net outflow of ₹1.09 lakh crore against an outflow of ₹96,949 crore due to redemption to meet quarter-end tax liability.

Overall the industry recorded an outflow of ₹52,949 crore against outflow of ₹64,021 crore. The asset under management was up to ₹82.22 lakh crore ( ₹81.58 lakh crore).

Venkat Chalasani, Chief Executive, AMFI, said the consist SIP inflows despite the volatile markets reflects growing investor confidence and the increasing adoption of disciplined, long-term investing.

While the geopolitical remains a headwinds, the prospects of domestic economy appears bright with growing consumption leading to better corporate earnings, he added.

Varun Gupta, CEO, Groww Mutual Fund, said the negative net figure was a function of seasonal debt outflows rather than any weakening of investor appetite for equities. Continued interest in mid caps, small caps, flexi caps, arbitrage and multi asset strategies indicates that investors remain focused on long-term wealth creation, looking past near-term market movements and liquidity-driven fluctuations, he added.

Suranjana Borthakhur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), said the data underscores a broader trend that retail investors continue to embrace disciplined investing and portfolio diversification.

As markets evolve, asset allocation and staying invested remain far more important than attempting to time short-term market movements, he said.

Umesh Sharma, CIO- Debt, The Wealth Company Mutual Fund, said hybrid scheme inflows increased to ₹12,893 crore ( ₹10,560 crore), led by robust demand for arbitrage and multi-asset allocation categories as investors preferred diversified, lower-volatility strategies amid broader market shifts.

Capital inflows consistently favoured mid-cap and small-cap equity funds, which continue to outpace broader benchmarks and sustain strong earnings momentum, he added.