Perspective on AMFI Data by Mr. Sanjay Agarwal, Senior Director at CareEdge Ratings
Below the Perspective on AMFI Data by Mr. Sanjay Agarwal, Senior Director at CareEdge Ratings
Equity mutual funds staged a strong comeback in June 2026, with net inflows rising 26% month-on-month to Rs 28,973 crore after falling nearly 40% to Rs 22,908 crore in May. The recovery underscores the resilience of investor sentiment amid global uncertainties and periodic bouts of market volatility. Positive market sentiment, expectations of supportive domestic macroeconomic conditions, and sustained retail participation continued to drive investment activity during the month. Notably, total equity fund inflows in the first half of CY2026 were more than 12% higher than those in H1CY25, led primarily by robust allocations to mid-cap and small-cap funds.
Precious metal ETFs, particularly gold ETFs, also rebounded attracting inflows of approximately Rs 7,500 crore in June compared with outflows of over Rs 2,800 crore in the previous month. This trend highlights the increasing acceptance of gold ETFs as a strategic asset allocation and portfolio diversification tool. Hybrid schemes also maintained positive momentum, with inflows rising to Rs 12,893 crore in June from Rs 10,560 crore in May, reflecting investors' continued preference for balanced investment solutions amid evolving market conditions.
Debt-oriented mutual funds recorded net outflows of Rs 1.09 lakh crore in June 2026. The outflows were largely driven by quarter-end liquidity requirements, prompting institutional investors and corporate treasuries to withdraw funds from ultra-short-duration, liquid, money market, and overnight schemes. More notably, short-duration and corporate bond funds also witnessed redemptions. Meanwhile, the quarter witnessed net inflows of Rs 41,888 crore compared to the outflows of Rs 1.78 lakh last quarter and inflows of Rs 2 lakh crore in the same quarter last year. The category in likely to witness inflows in July 2026 similar to that witnessed in July 2025 (~Rs 1 lakh crore).
The mutual fund industry’s assets under management marginally increased sequentially by 0.8% to Rs 82.22 lakh crore in June 2026 with open ended schemes continuing to account for over 99% of the industry AuM. This increase comes despite an outflow of Rs 0.53 lakh crore which was lower than the outflows of Rs 0.64 lakh crore witnessed last month. The decline was largely due to a withdrawal of Rs 1.09 lakh crore from debt-oriented schemes.
New issuances continued to remain muted as only 7 new fund offerings were launched in June 2026, collectively mobilising Rs 460 crore marginally lower than the amount collected last month. A single Aggressive Hybrid Fund accounted for 67% of this mobilisation with a balance coming from index funds, ETFs and a Large & Mid Cap Fund.
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