Equity MF inflows fall to ₹24,697 crore in July; SIP contributions cross ₹31,000 crore for 10th straight month

Equity mutual fund inflows moderated sharply in July, falling to ₹24,697 crore from ₹28,961 crore in June, even as systematic investment plan (SIP) contributions remained resilient and crossed ₹31,000 crore for the month, according to data released by the Association of Mutual Funds in India (AMFI) today.

Despite the month-on-month decline, July marked the 65th consecutive month of positive equity inflows since March 2021. SIP contributions rose 0.6% to ₹31,961 crore in July from ₹31,781 crore in June, underscoring continued retail participation in mutual funds.

MF industry AUM rises 4.3% to ₹85.76 lakh crore

The broader mutual fund industry also saw strong growth during the month, with net assets under management (AUM) rising 4.3% month-on-month to ₹85.76 lakh crore in July from ₹82.22 lakh crore in June. Average AUM stood at ₹86.34 lakh crore.

AMFI chief executive Venkat Chalasani said the mutual fund industry's net AUM grew 4.3% month-on-month to ₹85.76 lakh crore in July from ₹82.22 lakh crore in June, supported by higher market valuations and sustained buying by domestic institutional investors.

“The industry’s growth momentum was further bolstered by strong inflows through SIPs, which totalled ₹31,961 crore in July,” Chalasani said.

The number of contributing SIP accounts stood at 10.63 crore in July. Retail mutual fund AUM, comprising equity, hybrid and solution-oriented schemes, rose to ₹50.69 lakh crore from ₹49.41 lakh crore in June. Retail folios increased to 21.40 crore from 21.23 crore.

Equity flows remain range-bound amid cautious investor stance

Akhil Chaturvedi, executive director and chief business officer at Motilal Oswal Asset Management Company, said equity-oriented flows have remained broadly range-bound despite the continued strength of SIPs.

“Flows remain range bound between ₹25,000 crore to ₹30,000 crore on net basis, while flow is positive largely through the ₹30,000 crore strong SIP,” Chaturvedi said.

He said investors are taking a cautious view of equity-oriented mutual funds amid relatively lower returns over the past two years.

“We feel there is a cautious stance on equity-oriented MF given lower returns over the past two-year period. We also believe flows to some extent are moving towards SIFs and arbitrage products, which are seen as low-risk and absolute-return options,” he said.

SIF assets jump nearly 30%

SIF assets rose 29.8% month-on-month to ₹23,177 crore in July, while the category recorded inflows of ₹4,922 crore, driven by hybrid and equity-oriented investment strategies.

Viraj Gandhi, CEO of SAMCO Mutual Fund, said investors are increasingly moving away from defensive strategies in search of higher-alpha opportunities.

“Investors are reducing exposure to defensive strategies across both equity and hybrid categories to pursue higher-alpha, smaller-cap positioning,” Gandhi said.

He said the moderation in flows into large-cap, flexi-cap, balanced advantage and equity savings funds indicates that retail investors may be becoming more comfortable taking higher domestic equity risk over the long term.

Mid-, small-cap funds continue to attract interest

Varun Gupta, CEO of Groww Mutual Fund, said July represented a turnaround in mutual fund flows after the outflows recorded in June.

“July 2026 marked a strong turnaround in mutual fund flows, with the industry recording net inflows across major categories after the outflows seen in June,” Gupta said.

He said the reversal in debt flows was particularly notable, with liquid, overnight and money-market funds attracting strong flows, while longer-duration categories remained under pressure.

Within equities, Gupta said mid-cap, small-cap and flexi-cap strategies continued to attract investor interest, while large-cap funds saw some moderation.

“The continued strength of Multi Asset Allocation funds adds another dimension to this trend,” Gupta said, adding that sustained flows into the category point to growing acceptance of diversification as an important part of portfolio construction.

Mutual fund houses launched 25 new schemes in July, collectively raising ₹2,022 crore.