- Equity Funds Record Highest Inflows
- Debt Funds Regain Investor Confidence
- New Fund Offers (NFOs) with Significant Attention
- The Youthful Drive of the Market
- In Conclusion
The Indian Mutual Fund industry has experienced continuous growth over the years. To put it in perspective, the industry's Assets Under Management (AUM) have grown from ₹11.73 trillion in June 2015 to ₹74.41 trillion by June 30, 2025. This indicates that more investors are turning to mutual funds to help grow their money. Source: AMFI India
In this blog, we will take a closer look at this growth, breaking down the numbers for equity, debt, and hybrid funds, as well as the ever-popular SIP inflows as of July.
Equity Funds Record Highest Inflows
In July 2025, equity mutual funds saw inflows of ₹42,702 crore, which is an 81% increase and a new record. In comparison, the inflows were ₹23,587 crore in June and ₹37,113 crore in July of the previous year.
Here’s a breakdown of where the money flowed:
- Sectoral/Thematic Funds: These funds have attracted the highest inflows of ₹9,426.03 crore, representing a significant increase from ₹475.61 crore in the previous month, a 1,882% rise.
- Flexi Cap Funds: In July 2025, Flexi Cap Funds recorded healthy net inflows of ₹7,654.33 crore, which was only ₹5,733.16 crore in the previous month.
- Small Cap and Mid Cap Funds: Continuing their strong run, these funds saw inflows of ₹6,484.43 crore and ₹5,182.49 crore, respectively.
- ELSS Funds: This was the only category to witness a net outflow, with ₹368.18 crore being withdrawn. However, this was an improvement over the ₹556.11 crore outflow in June.
Debt Funds Regain Investor Confidence
After two consecutive months of outflows of ₹1,711.47 crore in June, debt mutual funds made a comeback in July, attracting net inflows of ₹1.06 lakh crore, with the highest contribution of Money Market Fund of ₹44,573.60 crore and Liquid funds with ₹39,354.93 crore. This reversal signals renewed investor confidence in fixed-income securities.
The Rise of SIPs
Systematic Investment Plans (SIPs) continue to be the favoured investment method for retail investors. The numbers for July 2025 record a high:
- Record High Inflows: SIP contributions hit a new peak of ₹28,464 crore, a 4% increase from June.
- New Registrations: An impressive 68,69,061 new SIPs were registered during the month.
- Growing Investor Base: The total number of contributing SIP accounts climbed to 9.11 crore.
- Substantial AUM: The total Assets Under Management (AUM) for SIPs stood at ₹15.19 lakh crore.
New Fund Offers (NFOs) with Significant Attention
The NFO is also seeing a growing activity in July. Around 30 new open-ended mutual funds were launched, collectively raising ₹30,416 crore.
- Debt NFOs: Five new debt funds were the most significant contributors, raising ₹18,948 crore.
- Equity NFOs: Nearly ten new equity funds successfully collected ₹8,997 crore.
- Passive and Hybrid NFOs: Thirteen passive funds brought in ₹584 crore, while two hybrid funds mobilised ₹1,887 crore.
The Youthful Drive of the Market
A key trend shaping the mutual fund landscape is the enthusiastic participation of young investors.
- Recent industry trends indicate that nearly 48% of the mutual fund investor base is in the 18 to 30 age bracket. This points to a major shift in the financial mindset of the youth, who are increasingly looking towards long-term wealth creation.
- Furthermore, estimates suggest that approximately 95% of Gen Z investors begin their investment journey with equity mutual funds, indicating a strong appetite for high-risk, high-reward opportunities.
In Conclusion
The Indian mutual fund industry is in a vibrant phase of growth, fueled by record-breaking equity inflows, the unwavering popularity of SIPs, and the increasing participation of a younger, more financially savvy demographic. The strong return of debt funds adds further stability to this impressive growth story. As more Indians embrace mutual funds as a core component of their financial planning, the industry is poised for continued expansion and innovation.
Disclaimer: The content is meant for education and general information purposes only. Past performance is not indicative of future returns.. The figures mentioned in this article are indicative and for general informational purposes only. Readers are encouraged to verify the exact numbers and financial data from official sources. Mutual Funds are non-exchange traded products, and INDstocks is merely acting as a mutual fund distributor. All disputes with respect to distribution activity, would not have access to the exchange investor redressal forum or arbitration mechanism. Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), AMFI Registration No: ARN-254564, SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.