India’s Mutual Fund Flows – June 2026: Total Mutual Fund assets inch up to Rs 82.22 lakh crs

Indian mutual fund industry ended June 2026 with assets of Rs 82.22 lakh crs compared to Rs 81.58 lakh crs in May 2026.  Assets have grown by 10.5% over one year and 85% over the last three years.

The Industry witnessed net outflows of Rs 0.53 (0.64) lakh crs, with debt schemes showing outflows of Rs 1.09 (0.97) lakh crs and equity and hybrid schemes showing net positive inflows of Rs 28,973 (22,908) crs and Rs 12,893 (10,560) crs respectively.  Equity schemes saw an increase in assets to Rs 37.33 (36.13) lakh crs.  This was mainly due to positive net flows as well as positive performance of the equity markets.  Nifty 500 was up 1.71% and Nifty 50 was up by 1.67% (-1.72%) with mid caps up by 0.98% (2.63%) and small caps up by a huge 4.34% (1.6%).  Mid and small caps have had a great three month run and are almost at their all time high levels.  One year returns for top and broader markets are negative except for Midcaps and  small caps which are positive.

– Net flows in equity schemes increased by almost 26% compared to May 2026.  Mid and small caps saw an increase in flows mainly due to their good performance over the last three months.  Equity markets may now move based on Q1 financial results of companies.  These numbers will reflect the first full quarter’s impact of the geo-political tensions which started in February 2026.  Though net flows were higher compared to last month, they are below the SIP flows for the last two months, which indicates that lumpsum flows are negative.  Investors are redeeming more than what they are investing via lumpsum investments.  Equity inflows also occur via hybrid funds as well as Index ETFs and Index funds.  The flows through these funds has been consistent over the last few months.  Net inflows in various categories were as under:

– Sectoral/Thematic Funds: Rs 1,469 (648) crs

– Flexi-Cap Funds: Rs 5,231 (5,176) crs

– Small-Cap Funds: Rs 5,602 (4,946) crs

– Mid-Cap Funds: Rs 6,090 (4,385) crs      

📌 #EquityFunds #MutualFunds #WealthCreation #LongTermInvestment #EquityMarket #ELSSschemes #Equityschemes

– Total debt fund AUM was Rs 17.38 (18.25) lakh crore due to negative flows mainly due to quarter end.  Market action would have been positive since interest rates moved lower along with the decrease in oil prices due to the stoppage of hostilities in the middle east.  However, as we write this, the war seems to have started again.  It is likely that the war may become a non-event in a few months if the passage through the Strat of Hormuz gets sorted.

This category saw a net outflow of Rs 1.09 lakh crs which was in addition to the outflow of Rs 0.96 lakh crs last month.  Almost all debt fund categories saw outflows with Liquid, low durations and ultra short funds seeing the most outflows.  Liquid funds assets further dipped to at Rs 5.71 (6.09) lakh crs and now has become smaller than the Flexi cap funds category at Rs 5.8 lakh crs.

Interest rate movements are expected to remain volatile due to movements in inflation impacted by oil prices.  Investors can take exposure to shorter duration funds such as liquid and ultra short funds which have low duration and hence react much less to interest rate movements compared to longer duration funds.

#DebtFunds #InterestRates #BondMarket #FixedIncome #FinancialPlanning

Hybrid funds’ assets were at Rs 11.44 (11.15) lakh crs.  Net inflows into hybrid funds stood at Rs 12,893 (10,560) crs, led by Arbitrage and Multi Asset Allocation funds.  Flows increased compared to last month.  Multi Asset funds have seen a huge jump in assets from 30,000 crs to 200,000 crs.  These are the best funds for those looking at low double digit returns with less volatility.

📌 #HybridFunds #Diversification #RiskManagement #BalancedInvestment

AUM of passive schemes was Rs 15.30 (15.26) lakh crs and grew 0.3% over May.  Silver inflows jumped to Rs 4,286 crs after four months of outflows.  Gold ETFs saw inflows of Rs 3,443 (-725) crs.  NFOs in index and ETFs collected Rs 63 crs during the month.  Gold ETFs have assets of Rs 1.7 lakh crs and have grown by 162% over one year and 661% over three years.  Silver ETFs have assets of Rs 0.79 lakh crs.  Ideally, Gold ETFs should have assets which should be at least 8-10 times of Silver ETFs AUM as silver is more volatile and has become as investable asset only recently vis a vis gold.  Gold and silver prices have seen a correction and investors may be taking a bet on prices rising again.  However, it’s best to stick to an asset allocation plan rather than chase lower prices.

FoFs collected almost Rs 1,922 (957) crs of net inflows.

SIFs are now managing Rs 17,858 (13,814) crs.  Inflows into SIFs for the month was Rs 3,782 (1,396) crs.  This is the highest monthly inflow in SIFs in this calendar year.  Interestingly, most of the AUM is in Hybrid SIFs, which have been positioned between arbitrage and debt funds.  It’s interesting how the market can position such products inspite of they being ostensibly more aggressive than others.   Inflows in SIFs are expected to grow as more AMCs launch these products as well as more distributors pass the NISM exam and become SIF distributors.  The SIF exam is considerably more difficult than the Mutual Fund exam.

Lumpsum investments have turned negative.  SIP and lumpsum investments should be treated similarly by Investors.  These should be invested in equity funds only if the investment horizon is more than 4-5 years.  Dips in the market should be used to increase equity allocation as long as the same is as per their asset allocation plan.

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