Equity Mutual Fund Inflows Reach All-Time High Rs.42,702 Crore in July, Rise 81%: AMFI
India’s mutual fund sector experienced a record surge in investor appetite during July 2025, with equity mutual fund inflows shooting up 81% from the previous month to Rs.42,702 crore (US$ 4.87 billion), said the Association of Mutual Funds in India (AMFI) latest figures. This is the largest-ever monthly intake for equity funds and the 53rd straight month of positive inflows into equity funds.
Historic Month for the Mutual Fund Industry
The assets under management (AUM) of the industry also reached its all-time high of Rs.75.36 lakh crore, led by high investor participation in both the equity and debt segments. Importantly, Systematic Investment Plans (SIPs) continued to drive retail participation, with record SIP inflows of Rs.28,464 crore in July, as the total active SIP accounts reached 9.11 crore.
Category-Wise Equity Fund Performance
Investor demand was robust across all 11 categories of equity funds monitored by AMFI, with many recording their highest-ever inflows:
Thematic strategies picked up unprecedented momentum, a sign of investor confidence in focus-growth industries despite market turbulence overall.
Debt Funds Make a Return
Debt mutual funds also saw a stunning reversal, with net inflows of Rs.1.06 lakh crore in July. Liquid funds and money market funds were the top performers, riding high on advantageous short-term yield prospects as well as corporate treasury investment.
Domestic Investors Offset FPI Outflows
Interestingly enough, the upsurge in domestic investment occurred when foreign portfolio investors (FPIs) were net sellers, pulling out close to $2 billion from Indian equities as global trade uncertainty and lackluster earnings guidance prompted caution. Retail and domestic institutional investors are believed to have seen this as a buying opportunity, reinforcing the strength of the market.
Outlook: Positive Sentiment Likely to Continue
Market analysts feel the strong inflows indicate high retail confidence in equities and the continued popularity of SIPs as a disciplined wealth creation tool. With sector-specific opportunities, strengthening macroeconomic indicators, and accommodative monetary policy, the pace in mutual fund inflows is likely to continue in the next few months.
CONCLUSION
July 2025 will be a historic month for India’s mutual fund sector—both for the record-breaking equity flows and the ongoing dominance of retail-led SIP investments. The figures are an indication of a maturing investment culture when domestic participation is increasingly counterbalancing global headwinds.
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