Mutual Fund Industry Hits Historic Highs in July 2025

The Indian mutual fund industry delivered a landmark performance in July 2025, with inflows across categories hitting fresh records and total assets under management (AUM) soaring to ₹75.35 lakh crore, the highest ever.

Equity Mutual Funds: Inflows Nearly Double MoM

Equity mutual funds continued to attract strong retail and institutional demand, recording net inflows of ₹42,702 crore, almost double the ₹23,587 crore seen in June. Investor appetite was broad-based across categories:

• Small-cap funds: ~₹6,484 crore

• Mid-cap funds: ~₹5,182 crore

• Large-cap funds: ~₹2,125 crore

The data reflects growing confidence in India’s long-term equity story despite global volatility.

Debt Funds Stage a Massive Rebound

After witnessing outflows in June, debt mutual funds saw a dramatic turnaround with inflows of ₹1.07 lakh crore, compared to an outflow of ₹1,711 crore the previous month. The surge was led by:

• Money market funds: ~₹44,573 crore

• Liquid funds: ~₹39,354 crore

The rebound signals stronger liquidity management by corporates and institutions, boosting short-term market confidence.

SIP Flows Scale New Heights

Retail participation through Systematic Investment Plans (SIPs) continued to break records:

• Monthly SIP inflows: ₹28,464 crore (vs. ₹27,269 crore in June)

• New SIP registrations: 68.7 lakh

• Total contributing accounts: 9.11 crore

• SIP AUM: ₹15.19 lakh crore

This reflects the growing financial discipline of Indian households, turning SIPs into a backbone of equity inflows.

Folio Growth Highlights Retail Expansion

The industry’s investor folios rose sharply to 24.57 crore in July, up by 44 lakh from June. Equity folios climbed to 17.13 crore, while debt folios rose to 75.11 lakh.

Hybrid and passive funds also saw healthy expansion:

• Hybrid fund folios: +12.4% YoY

• Passive fund folios: +36% YoY

Hybrid & Passive Funds Maintain Momentum

Hybrid funds posted ₹20,879 crore inflows, with arbitrage funds contributing ₹7,295 crore. Passive funds, including ETFs, index funds, and gold ETFs, recorded ₹8,259 crore in July inflows, underlining the growing investor shift toward low-cost strategies.

NFOs Attract ₹30,416 Crore

July also witnessed 30 new fund offers (NFOs) across equity and debt categories, collectively mobilizing ₹30,416 crore. This highlights the strong appetite for new investment opportunities.

Why This Matters

• Retail dominance: Record SIP flows and rising folios show deepening financial inclusion.

• Debt revival: Institutional demand and liquidity-driven flows signal market confidence.

• Market maturity: Broad-based inflows reflect a structural shift toward domestic-led market resilience, reducing dependency on foreign flows.

Final Takeaway

July 2025 stands as a watershed moment for India’s mutual fund industry. Record equity inflows, a dramatic turnaround in debt markets, and unprecedented SIP participation highlight the resilience of Indian investors. If sustained, this momentum will not only strengthen India’s capital markets but also accelerate the country’s journey toward long-term financial inclusion and wealth creation.