The mutual fund industry has hit yet another milestone! June 2025 witnessed a strong 13.2% QoQ growth in AUM, taking total assets to an all-time high of ₹74.41 lakh crore. This month’s robust momentum was powered by a healthy mix of market returns (MTM gains) and steady investor participation, especially through SIPs and hybrid fund inflows.
Here’s a quick but comprehensive roundup of the latest trends shaping the mutual fund landscape.
Industry Snapshot: Strong Growth Across the Board
- Total AUM: ₹74.41 lakh crore (vs ₹72.19 lakh crore in May)
- Monthly Net Inflows: ₹49,095 crore
- MTM Gains: Contributed more than 75% of the monthly AUM increase
- Quarterly Trend: Net inflows up 16% compared to Q2 2024
- FIIs & DIIs: FIIs turned net buyers, and DIIs recorded their highest equity inflows in 5 months
The gains were underpinned by strong equity market performance—Nifty 50 TRI gained 3.37% and Sensex TRI rose 2.98% during June. This helped amplify investor confidence, especially in risk-based categories like equity and hybrid funds.
Category-Wise Performance Highlights
Equity Mutual Funds
- AUM: ₹33.47 lakh crore (+4.4% MoM)
- Net Inflows: ₹23,587 crore (52nd consecutive month of inflows)
- Top Contributors:
- Flexi-cap Funds: ₹5,733 crore (highest for 4th month running)
- Small-cap Funds: ₹4,024 crore
- Mid-cap Funds: ₹3,754 crore
- Under Pressure: ELSS saw net outflows of ₹556 crore, likely due to post-tax-season adjustments
- New Launches: 4 new equity NFOs collected ₹928 crore in total
Investor interest in equity funds remains high, supported by both domestic flows and a bullish market outlook. Flexi-cap and small-cap funds continue to attract consistent inflows as investors look for diversified growth opportunities.
Debt Mutual Funds
- AUM: ₹17.58 lakh crore (new peak; +0.2% MoM)
- Net Flows: Outflows of ₹1,711 crore
- What Worked:
- Short Duration Funds: +₹10,277 crore
- Money Market Funds: +₹9,484 crore
- Corporate Bond Funds: +₹7,124 crore
Despite the modest outflows, shorter-duration debt funds saw traction, reflecting investor preference for liquidity and safety amid interest rate movements and geopolitical uncertainty. RBI’s 50 bps rate cut also affected long-duration bond demand, widening the term spread.
Hybrid Mutual Funds
- AUM: ₹9.92 lakh crore (+3.8% MoM)
- Net Inflows: ₹23,223 crore (highest monthly inflow ever)
- Segment Leaders:
- Arbitrage Funds: ₹15,585 crore inflow
- Multi-Asset Allocation Funds: ₹3,210 crore
- Dynamic Asset Allocation/Balanced Advantage Funds: ₹1,886 crore
Rising volatility and a balanced risk-reward setup have pushed more investors toward hybrid categories. Arbitrage funds, in particular, gained from increased market volatility, offering near-fixed-income returns with low risk.
Passive Mutual Funds
- AUM: ₹12.62 lakh crore (+3.1% MoM)
- Net Inflows: ₹3,997 crore (56th straight month of positive flows)
- Gold ETFs: ₹2,081 crore inflow
- Index Funds: ₹1,043 crore inflow
Gold ETFs remained the highlight in June, boosted by safe-haven demand amidst geopolitical tensions. Passive investing continues to gain traction, especially with the surge in low-cost index and sector ETFs.
SIP Corner: New Records Every Month
- Monthly SIP Contributions: ₹27,269 crore (New all-time high)
- No. of SIP Accounts: 8.64 crore (vs 8.56 crore in May)
- SIP AUM: ₹15.31 lakh crore, now 20.6% of the total industry AUM
Despite market uncertainties, SIPs continue to be the bedrock of retail investor participation. The consistent rise in contributions and accounts underscores growing trust in disciplined, long-term investing.
Macro & Market Overview
RBI’s Surprise 50 bps Rate Cut
- Repo rate reduced to 5.50%, with a total of 100 bps cut in 2025
- CPI Inflation at 2.8% YoY in May—lowest in six years
- Market reacted positively; equity indices rallied, FIIs invested ₹14,590 crore in June
Bond Market Trends
- 10-year G-Sec yield closed at 6.32% (vs 6.27% in May)
- Liquidity measures and easing inflation helped stabilize bond prices despite crude oil volatility
Global Backdrop
- US mutual funds continued to see outflows amid trade war fears and economic slowdown concerns
- In contrast, India stood out as a bright spot with consistent inflows and policy support
Key Takeaways
- Mutual funds are now a ₹74 lakh crore industry with growing SIP power and retail participation.
- Investor preference is slowly shifting to balanced and low-volatility options, as seen in the hybrid and arbitrage segments.
- Passive and SIP-based strategies continue gaining favour—ideal for investors seeking long-term, cost-effective exposure.
What’s your view on the current mutual fund trends? Are you adjusting your allocations in light of interest rate changes or staying the course with SIPs?
Join the conversation below 