Informist, Wednesday, Jul. 9, 2025

NEW DELHI/MUMBAI - Open-ended equity and hybrid funds were the top attractions for mutual fund investors in June and they helped the industry's net inflows rise to INR 490.95 billion from INR 291.08 billion in May, according to data released by the Association of Mutual Funds in India Wednesday. In June last year, mutual fund schemes saw net outflows of INR 436.37 billion.

Equity-oriented schemes drew INR 235.87 billion of net investment in June from INR 190.13 billion in May. Net inflows in equity funds rose month-on-month after five months of decline. Data showed inflows in all fund heads except for Equity-Linked Savings Schemes. Flexi-cap funds were the most in demand, with INR 57.33 billion of net inflows, while small cap funds saw net inflows of over INR 40 billion. The benchmark Nifty 50 index rose 3% in June to end at 25517.05 points. Meanwhile, open-ended hybrid schemes had net inflows of INR 232.23 billion in June, up nearly 12% from the previous month.

Open-ended debt schemes continued to register outflows, largely due to liquid funds, though the pace reduced to INR 17.11 billion in June from nearly INR 160 billion the previous month. Liquid funds saw outflows of over INR 250 billion in June, but investors pumped in nearly INR 200 billion into money market and short-duration funds during the month. Corporate bond funds registered a second strong month of inflows, at INR 71.24 billion in June from INR 119.83 billion in May.

Net inflows of 20 gold ETFs skyrocketed to INR 20.81 billion in June from INR 2.92 billion a month ago, the data showed. Venkat Chalasani, chief executive of the association, attributed this surge in net inflows to higher gold prices globally in June, amid geopolitical uncertainties. "We have seen the gold prices surging from (around) $3,300 per ounce to $3,435 per ounce in this particular month. And this is a safe haven moment," he added. The net assests under management in gold ETFs rose nearly 4% on month to INR 647.77 billion as of Jun. 30.

Meanwhile, net inflows into silver ETFs were as high as in gold ETFs for the month. The 15 silver ETFs net inflows were up a whopping 135% on month at INR 20.04 billion in June. The net assests under management rose over 20% on month to INR 202.86 billion in June. There is no shift from gold ETFs to silver ETFs, in fact there are flows into both, Chalasani said, adding "...whenever there is a risk aversion, you find that both (gold and silver) of them surge."

As an industry, mutual fund assets under management were up 3% on month at INR 74.41 trillion as on Jun. 30. AUM of open-ended debt funds was largely unchanged from the previous month at INR 17.58 trillion, while outflows in this segment fell significantly to INR 17.11 billion in June from INR 159.08 billion reported in May.

Open-ended equity funds witnessed a 4% on-month increase in AUM, reaching INR 33.47 trillion as of Jun. 30. Similarly, open-ended hybrid funds saw a 3.8% rise in AUM, taking it to INR 9.92 trillion.

Systematic Investment Plans continued to grow, with inflows of INR 272.69 billion in June, up from INR 266.88 billion in May. During the month, 6.2 million new folios were added under SIPs, while 4.8 million SIP folios matured or were discontinued in June, Chalasani said during the call.

"The number of contributing SIP accounts have also grown to 86.4 million in June from 85.6 million in May," Chalasani said. "Taking the overall SIP assets to INR 15.31 trillion and the SIP assets as a percentage of industry assets have grown to 20.6% in the month of June from 20.2% in the month of May."

Short duration debt funds attracted net inflows of INR 102.77 billion in June, while arbitrage funds saw net inflows of INR 155.85 billion. Thematic funds, however, witnessed a significant decline in net inflows to INR 4.76 billion, down from INR 20.52 billion in May. End

Reported by Vaishali Tyagi, Aaryan Khanna and J. Navya Sruthi

Edited by Vandana Hingorani

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