Mutual fund inflows hit ₹2.35 lakh crore in July; AUM at ₹85.76 lakh crore
Synopsis
India's mutual fund industry pulled in ₹2.35 lakh crore in net inflows in July 2025, pushing AUM to ₹85.76 lakh crore. Debt schemes — led by liquid funds at ₹1.19 lakh crore — drove the bulk of the surge, while small-cap and mid-cap equity funds outpaced large-caps, signalling a clear risk-on tilt among retail investors even as large-cap and ELSS categories bled outflows.
Key Takeaways
India's mutual fund industry recorded a net inflow of ₹2.35 lakh crore in July 2025 , according to AMFI data.
Total AUM reached ₹85.76 lakh crore (₹85,75,656.52 crore) as of 31 July .
Debt-oriented schemes led with a net inflow of ₹1.88 lakh crore ; liquid funds alone attracted ₹1,19,065.85 crore .
Equity schemes drew ₹24,697 crore ; small-cap funds topped the equity category at ₹7,767.50 crore .
Large-cap funds saw a net outflow of ₹1,321.69 crore ; ELSS funds shed ₹959.13 crore .
Total mutual fund folios stood at 28.09 crore as of 31 July .
India's mutual fund industry recorded a net inflow of ₹2.35 lakh crore in July 2025, with total assets under management (AUM) climbing to ₹85.76 lakh crore, according to data released by the Association of Mutual Funds in India (AMFI) on Tuesday, 11 August. The numbers signal sustained retail and institutional appetite for managed funds even as market conditions remain mixed.
Debt Schemes Drive the Surge
Debt-oriented schemes were the primary engine of July's inflows, pulling in a net ₹1.88 lakh crore during the month. Within this category, liquid funds dominated with a net inflow of ₹1,19,065.85 crore, followed by overnight funds at ₹40,412.55 crore and money market funds at ₹21,180.23 crore. The heavy concentration in short-duration instruments points to a preference for liquidity management, particularly among institutional investors parking surplus cash.
Equity Schemes Stay Positive
Equity-oriented schemes attracted a net ₹24,697 crore in July, maintaining their positive run. Among equity categories, small-cap funds led with the highest net inflow at ₹7,767.50 crore, followed by mid-cap funds at ₹6,192.31 crore and flexi-cap funds at ₹4,709.08 crore. Large and mid-cap funds received ₹3,425.34 crore, while multi-cap funds drew ₹3,227.29 crore. Sectoral and thematic funds logged a net inflow of ₹1,328.27 crore.
Notably, not all equity categories fared well. Large-cap funds recorded a net outflow of ₹1,321.69 crore, while ELSS funds saw an outflow of ₹959.13 crore and dividend-yield funds shed ₹169.16 crore. The divergence suggests investors are rotating away from large-cap defensives toward higher-risk, higher-return segments.
Hybrid, ETF, and Index Funds
Hybrid schemes collectively attracted a net ₹11,490.56 crore, with arbitrage funds accounting for the largest share at ₹6,502.44 crore and multi-asset allocation funds contributing ₹3,753.38 crore. Among passive vehicles, ETFs recorded a net inflow of ₹9,512.05 crore, Gold ETFs attracted ₹1,558.75 crore, and index funds saw net inflows of ₹1,536.60 crore. The continued traction in passive products reflects a broader structural shift among cost-conscious investors.
AUM and Folio Count
The total AUM of mutual fund schemes stood at ₹85,75,656.52 crore as of 31 July, compared with an average AUM of ₹86,33,798.38 crore during the month. Open-ended schemes dominated, recording net inflows of ₹2,36,595 crore and taking their AUM to ₹85,59,041 crore. The total number of mutual fund folios stood at 28.09 crore as of 31 July, reflecting the industry's expanding retail base. With debt inflows robust and equity participation steady, the mutual fund sector's growth trajectory appears intact heading into the second half of the financial year.
Point of View
Much of it institutional cash management rather than long-term wealth creation. Strip that out and the picture is more nuanced. The real signal is within equity: small-cap and mid-cap funds are drawing far more than large-caps, which actually bled outflows. That rotation carries valuation risk — small and mid-cap indices are trading at stretched multiples, and retail investors chasing recent returns in these categories could face sharper drawdowns in a risk-off environment. The industry's 28.09 crore folio count is a genuine structural positive, but regulators and fund houses alike should be watchful of concentration risk building quietly in the smaller-cap segment.
NationPress
11 Aug 2026
Frequently Asked Questions
What was the net inflow into mutual funds in July 2025?
India's mutual fund industry recorded a net inflow of ₹2.35 lakh crore in July 2025, according to AMFI data released on 11 August. Debt-oriented schemes drove the bulk of the inflows at ₹1.88 lakh crore, while equity schemes contributed ₹24,697 crore.
What is the total AUM of India's mutual fund industry as of July 2025?
The total assets under management (AUM) stood at ₹85,75,656.52 crore as of 31 July 2025, according to AMFI. The average AUM during the month was ₹86,33,798.38 crore.
Which equity mutual fund category attracted the highest inflows in July 2025?
Small-cap funds led all equity categories with a net inflow of ₹7,767.50 crore in July 2025. Mid-cap funds came second at ₹6,192.31 crore, followed by flexi-cap funds at ₹4,709.08 crore.
Which mutual fund categories saw net outflows in July 2025?
Large-cap funds recorded a net outflow of ₹1,321.69 crore in July 2025, while ELSS funds shed ₹959.13 crore and dividend-yield funds registered an outflow of ₹169.16 crore.
How many mutual fund folios exist in India as of July 2025?
The total number of mutual fund folios in India stood at 28.09 crore as of 31 July 2025, reflecting the industry's continued expansion of its retail investor base.
