July 2025 marks the strongest-ever month for equity inflows, SIP contributions, and total industry AUM.
The Indian mutual fund industry recorded unprecedented growth in July 2025, with several key performance indicators reaching historic highs, demonstrating remarkable resilience amid global market volatility and domestic economic uncertainties.
Record-Breaking Equity Fund Inflows
Equity mutual funds witnessed their strongest monthly performance ever, with net inflows surging by 81 per cent to Rs 42,702 crore in July 2025, compared to Rs 23,587 crore in the previous month. This marked the 53rd consecutive month of positive equity inflows, continuing an unbroken streak that began in March 2021.
The equity surge was driven by broad-based investor interest across multiple categories. Sectoral and thematic funds led the charge with remarkable inflows of Rs 9,426 crore, representing an extraordinary 1,882 per cent jump from Rs 475 crore in June. This dramatic increase reflects renewed investor appetite for specialized investment themes and sector-specific opportunities.
Small-Cap funds attracted Rs 6,484 crore, registering the highest-ever monthly inflow within this category, while Mid-Cap funds saw Rs 5,182 crore and large & mid-cap funds recorded Rs 5,035 crore – both achieving their respective all-time monthly highs. Flexi-cap funds contributed Rs 7,654 crore to the equity momentum.
Notably, Equity Linked Savings Schemes (ELSS) continued experiencing outflows for the fourth consecutive month, with Rs 368 crore withdrawn, indicating either tax-season portfolio adjustments or investors exploring alternative tax-saving instruments.
Assets Under Management Reach New Peak
Total industry Assets Under Management (AUM) climbed 1.3 per cent month-on-month to reach Rs 75.36 lakh crore in July 2025, establishing a new all-time high. The Average Assets Under Management (AAUM) for the month stood at Rs 77.00 lakh crore.
The growth represents significant expansion from previous periods, with AUM increasing from Rs 74.41 lakh crore in June and Rs 72.20 lakh crore in May. This upward trajectory occurred despite pressures from a strengthening US dollar and persistent foreign institutional investor outflows.
Systematic Investment Plans Hit Record Heights
SIP contributions reached an all-time high of Rs 28,464 crore in July 2025, marking a 4 per cent increase from Rs 27,269 crore in June. The number of new SIP registrations jumped to 68.69 lakh, significantly exceeding June’s 61.91 lakh and May’s 59.14 lakh registrations.
Contributing SIP accounts grew 5.4 per cent month-on-month to reach 9.11 crore, expanding from 8.64 crore in June. SIP AUM stood at Rs 15.19 lakh crore, representing approximately 20.2 per cent of the industry’s total assets.
The SIP stoppage ratio improved markedly, declining to 62.7 per cent in July from 77.7 per cent in June, indicating stronger investor commitment to systematic investing approaches.
Debt Funds Stage Strong Recovery
Debt mutual funds experienced a remarkable turnaround, recording net inflows of Rs 1.07 lakh crore in July after witnessing outflows of Rs 1,711 crore in June. This represented one of the strongest fixed-income flow months in fiscal year 2025.
Money market funds led the debt segment with substantial inflows of Rs 44,573 crore, while liquid funds attracted Rs 39,354 crore. Low duration funds received Rs 9,766 crore, and overnight funds garnered Rs 8,866 crore after experiencing redemptions in previous months.
New Fund Offers Generate Significant Interest
The month witnessed the launch of 30 new fund offerings (NFOs) across various categories, collectively mobilizing Rs 30,416 crore – marking the highest monthly NFO collection on record.
Debt schemes dominated NFO collections, with five funds raising Rs 18,948 crore. Ten equity schemes garnered Rs 8,997 crore, while two hybrid schemes collected Rs 1,887 crore. Major launches included offerings from prominent fund houses such as HDFC, ICICI Prudential, Sundaram, and newly entered Jio BlackRock AMC.
Hybrid and Alternative Investment Performance
Hybrid Funds maintained steady investor interest with inflows of Rs 20,879 crore, though this represented a 10 per cent decline from June’s Rs 23,222 crore. Arbitrage funds led hybrid inflows with Rs 7,295 crore, while multi-asset allocation funds attracted Rs 6,197 crore.
Passive funds, including ETFs and index funds, recorded a significant 107 per cent surge in inflows to Rs 8,259 crore, up from Rs 3,997 crore in June. Gold ETFs specifically saw inflows of Rs 1,256 crore, though this represented a 40 per cent decrease from June’s Rs 2,081 crore.
Investor Base Expansion and Participation
Total mutual fund folios increased to 24.57 crore in July from 24.13 crore in June. Retail mutual fund folios (covering equity, hybrid, and solution-oriented schemes) grew to 19.42 crore from 19.07 crore in the previous month.
Retail AUM under equity, hybrid, and solution-oriented schemes stood at Rs 43.91 lakh crore, maintaining stability around previous months’ levels.
Disclaimer: Figures are based on publicly available data as of the stated dates and may be revised; verify critical numbers with primary sources this is informational, not investment advice.
