AMFI June 2026: Equity Mutual Fund Inflows Jump 26.5%; Debt Outflows Cross Rs 1 Lakh Crore

Equity-oriented Mutual Funds witnessed stronger investor participation in June 2026 as net inflows increased 26.5 per cent month-on-month to Rs 28,973 crore from Rs 22,908 crore in May, according to data released by the Association of Mutual Funds in India (AMFI). The increase was primarily driven by sustained buying in Mid-Cap, Small-Cap and flexi-cap schemes, while Hybrid Funds and exchange-traded funds (ETFs) also attracted healthy investments.

Despite the improvement in equity flows, the mutual fund industry continued to record overall net outflows because debt-oriented schemes saw withdrawals exceeding Rs 1 lakh crore during the month.

Industry Outflows Narrow Despite Higher Redemptions

The mutual fund industry reported net outflows of Rs 52,949 crore in June compared with Rs 64,021 crore in May, reflecting a decline of 17.3 per cent in overall withdrawals.

Gross fund mobilisation rose 26.3 per cent to Rs 15.19 lakh crore, while gross redemptions increased 24.1 per cent to Rs 15.72 lakh crore. Since fresh investments grew faster than redemptions, overall industry outflows narrowed during the month.

Open-ended schemes reported net outflows of Rs 50,142 crore, improving 20.2 per cent from May. However, closed-ended scheme outflows widened sharply by 140.8 per cent to Rs 2,806 crore, mainly due to redemptions from fixed-term plans.

Equity Funds Lead the Recovery

Open-ended equity schemes attracted net inflows of Rs 28,973 crore in June, with nine of the 11 equity categories receiving positive investments.

Mid-cap funds emerged as the largest contributor, receiving Rs 6,090 crore, followed by small-cap funds at Rs 5,602 crore. Together, these two categories accounted for more than 40 per cent of total equity inflows.

Flexi-cap funds continued to remain a preferred investment destination, attracting Rs 5,231 crore. Large and mid-cap funds received Rs 4,321 crore, while multi-cap funds collected Rs 3,070 crore. Large-Cap schemes recorded inflows of Rs 2,067 crore.

Sectoral and thematic funds registered one of the strongest improvements during the month, with inflows more than doubling to Rs 1,469 crore. Focused funds attracted Rs 1,118 crore, while value and contra funds received Rs 687 crore.

Dividend yield funds remained under pressure, although outflows reduced to Rs 49 crore. Equity Linked Savings Schemes (ELSS) also continued to witness net withdrawals of Rs 634 crore.

Overall, flexi-cap, mid-cap and small-cap funds together accounted for nearly 58 per cent of total equity inflows during June.

Debt Fund Outflows Exceed Rs 1 Lakh Crore

Debt mutual funds witnessed net outflows of Rs 1,09,054 crore in June, compared with Rs 96,949 crore in May, representing a 12.5 per cent increase in withdrawals.

Liquid funds recorded the largest outflows at Rs 42,293 crore. Low-duration funds saw withdrawals of Rs 16,484 crore, while ultra-short-duration funds reported outflows of Rs 11,426 crore.

Money market fund withdrawals eased to Rs 10,595 crore, while overnight funds reported outflows of Rs 10,580 crore.

Corporate bond funds recorded net withdrawals of Rs 7,557 crore, and short-duration funds saw outflows of Rs 5,887 crore. Dynamic bond funds and medium-to-long-duration funds also remained under pressure.

Among debt categories, only credit risk funds and floater funds registered positive net investments. Credit risk funds received Rs 248 crore, while floater funds attracted Rs 452 crore after witnessing outflows in May.

Hybrid Funds Maintain Strong Momentum

Hybrid schemes attracted Rs 12,893 crore during June, up 22.1 per cent from the previous month.

Arbitrage funds remained the largest contributor with inflows of Rs 5,799 crore, while multi-asset allocation funds attracted Rs 4,811 crore. Together, these two categories contributed more than 82 per cent of total hybrid inflows.

Aggressive hybrid funds posted one of the sharpest increases, receiving Rs 2,121 crore. Balanced advantage and dynamic asset allocation funds attracted Rs 553 crore, while conservative hybrid funds received Rs 103 crore.

Equity savings funds were the only hybrid category to report net outflows, with withdrawals of Rs 495 crore.

Gold ETFs and Other ETFs Drive Sharp Recovery

The "Other Schemes" category recorded a significant turnaround, with net inflows surging to Rs 16,724 crore from just Rs 362 crore in May.

Other ETFs attracted Rs 13,238 crore after witnessing outflows in the previous month. Gold ETFs also returned to positive territory, receiving Rs 3,443 crore.

Index Funds slipped into marginal outflows of Rs 59 crore, while overseas fund-of-funds collected Rs 102 crore.

The sharp improvement in this segment was almost entirely driven by investments into ETFs and Gold ETFs.

Solution-Oriented Schemes Continue to Grow

Solution-oriented schemes attracted net inflows of Rs 321 crore in June, an increase of 18.7 per cent over May.

Children's funds contributed Rs 264 crore, while retirement funds received Rs 57 crore. Although relatively small in size, the category continued to record consistent positive investments.

Assets Under Management Touch Rs 82.22 Lakh Crore

The mutual fund industry's assets under management (AUM) increased 0.8 per cent to Rs 82.22 lakh crore at the end of June from Rs 81.58 lakh crore in May.

Equity fund AUM rose 3.3 per cent to Rs 37.34 lakh crore, while hybrid fund assets increased 2.5 per cent to Rs 11.44 lakh crore.

Debt fund assets declined 4.8 per cent to Rs 17.38 lakh crore due to continued redemptions. Assets under other schemes remained broadly stable at Rs 15.30 lakh crore.

The total number of mutual fund folios increased by 20.31 lakh to 27.86 crore. Equity-oriented schemes added around 9.46 lakh folios, while debt schemes added approximately 2.27 lakh folios.

New Fund Offers

Seven new fund offers (NFOs) concluded during June, raising a total of Rs 460 crore compared with 13 launches that mobilised Rs 471 crore in May.

The WhiteOak Capital Aggressive Hybrid Fund accounted for over two-thirds of the total collections by mobilising Rs 310 crore. The Wealth Company Large & Mid Cap Fund raised Rs 87 crore, while three index funds together collected Rs 48 crore. Two equity ETFs mobilised Rs 15 crore.

Outlook

June's AMFI data highlights continued investor preference for equity-oriented funds, particularly mid-cap, small-cap and flexi-cap schemes, despite elevated market valuations. Hybrid funds, Gold ETFs and other ETFs also witnessed healthy participation. However, heavy redemptions from liquid and shorter-duration debt funds kept the industry's overall monthly flows in negative territory even as assets under management continued to rise.

Disclaimer: The article is for informational purposes only and not investment advice.