Equity mutual fund inflows in India fell 42% year-on-year to Rs 24,697 crore in July, according to data released by industry body Amfi and reported by Business Today. The monthly total was also sharply lower than the Rs 28,973 crore recorded in June and the Rs 42,702 crore inflow of July last year, even as the headline figure widely reported as Rs 25,000 crore rounded the exact data. Despite the moderation, equity-oriented schemes logged their 65th consecutive month of positive inflows in July.
Equity inflows: July scoreboard
The Amfi data, released on Tuesday, shows a broad slowdown across equity categories. According to Business Today, the moderation comes despite continued retail participation, with monthly systematic investment plan (SIP) contributions rising marginally to Rs 31,961 crore in July from Rs 31,781 crore in June.
| Metric | July 2026 | June 2026 | July 2025 |
|---|---|---|---|
| Equity mutual fund inflows | Rs 24,697 crore | Rs 28,973 crore | Rs 42,702 crore |
| SIP contributions | Rs 31,961 crore | Rs 31,781 crore | Not available |
| Industry net flow | ~Rs 2.4 lakh crore (inflow) | Rs 52,949 crore (outflow) | Not available |
| Debt-oriented scheme flow | ~Rs 1.9 lakh crore (inflow) | Rs 1.1 lakh crore (outflow) | Not available |
Akhil Chaturvedi, ED & chief business officer at Motilal Oswal AMC, said the cautious stance towards equity-oriented mutual funds was partly due to lower returns over the past two years, as quoted by Business Today.
Category-wise flows: small caps lead, large caps lag
Among equity categories, small cap funds attracted the most at Rs 7,768 crore in July, followed by mid cap funds at Rs 6,192 crore and flexicap funds at Rs 4,710 crore, according to Amfi data reported by Business Today. Large cap funds took in Rs 1,322 crore during the month.
The data points to a more cautious approach among investors, with money continuing to enter equities but at a slower pace and with greater selectivity, Business Today reported.
"The moderation in equity mutual fund inflows reflects a degree of selectivity rather than a loss of investor confidence in equities. It also highlights ongoing portfolio rebalancing amid evolving valuations, with investors favouring segments that offer stronger long-term return potential while remaining mindful of associated risks," said Ankur Punj, MD & business head, Equirus Wealth.
Debt funds reverse June outflow, drive industry turnaround
The broader industry witnessed a turnaround in July, recording a net inflow of a little under Rs 2.4 lakh crore, compared with a net outflow of Rs 52,949 crore in June, according to Business Today. The reversal was driven by debt-oriented schemes, which attracted around Rs 1.9 lakh crore in July, reversing the Rs 1.1 lakh crore outflow recorded in June.
Liquid funds emerged as the biggest beneficiaries, garnering net inflows of Rs 1.2 lakh crore, followed by overnight funds at Rs 40,413 crore and money market funds at Rs 21,180 crore.
"The sharp reversal in debt flows was led by strong inflows into liquid, overnight and money market funds, even as longer-duration categories remained under pressure. This suggests that investors continue to value liquidity and flexibility in their debt portfolios rather than making a broad-based shift towards taking duration risk," said Varun Gupta, CEO, Groww Mutual Fund.
AUM gains and implications for finance executives
The industry's assets under management rose 4.3% month-on-month to just under Rs 85.8 lakh crore at the end of July, according to Amfi data reported by Business Today. Amfi CEO Venkat Chalasani said the increase was largely driven by higher market value and sustained buying by domestic institutions.
For CFOs, treasury directors and trade finance professionals tracking Indian capital flows, the July data signals that domestic institutions remain steady buyers of Indian equities despite softer equity returns, while debt investors are concentrating new allocations in short-duration, highly liquid instruments. According to Groww Mutual Fund CEO Varun Gupta, investors value liquidity and flexibility in their debt portfolios rather than making a broad-based shift towards taking duration risk. The continued monthly SIP growth — to Rs 31,961 crore from Rs 31,781 crore in June — shows a stable retail channel supporting the equity market even as category-level flows become more selective, as reported by Business Today.
Sources:
