Equity mutual fund inflows surged 81% month-on-month to Rs 42,702 crore in July 2025, compared with Rs 23,587 crore in June, according to data released by the Association of Mutual Funds in India (AMFI) on Monday. On a year-on-year basis, inflows rose 15% from Rs 37,113 crore in July 2024.
Sectoral and thematic funds top the chart
Among the 11 equity fund categories, sectoral and thematic funds topped the chart with inflows of Rs 9,426 crore. Flexi-cap funds witnessed inflows to the tune of Rs 7,654 crore. Sectoral and thematic schemes also saw the sharpest monthly jump, rising 1,882% from Rs 475 crore in the previous month. Dividend yield funds ranked next in terms of growth, with inflows rising 112% on a low base.
Small-cap, mid-cap funds saw an increase in inflows
Small-cap funds attracted Rs 6,484 crore, while mid-cap schemes saw inflows of Rs 5,182 crore, registering monthly increases of 61% and 38%, respectively. Dividend yield funds saw the lowest inflow at Rs 96.65 crore in July.
India’s equity markets have maintained their upward trajectory over the past month, supported by strong corporate earnings, steady domestic macroeconomic indicators, and positive global sentiment. The benchmark Nifty 50 and Sensex have recorded healthy gains, with mid- and small-cap indices once again outperforming their large-cap peers.
What led to sectoral momentum
Sectoral momentum has been led by auto, banking, and capital goods, while IT has seen mixed movement on global cues. Foreign portfolio investors (FPIs), who had turned sellers in previous months, have returned as net buyers, further boosting sentiment. Market volatility has remained subdued, with the India VIX hovering at multi-month lows, reflecting stable investor confidence.
The mutual fund industry has continued to see robust participation from retail investors, aided by the sustained rise in equity markets and growing financial literacy. Equity-oriented schemes have reported consistent inflows for over two years, highlighting investors’ preference for long-term wealth creation through equities. Systematic Investment Plans (SIPs) remain the cornerstone of retail investment, with monthly contributions holding above the ₹20,000 crore mark for several months and total SIP accounts steadily rising.
