FPIS NET SELL EQUITY; BUT NET BUY DEBT IN JULY 2025
For July 2025, FPIs were net sellers overall to the tune of ₹(5,538) Crore in Indian markets. This included ₹(17,741) Crore net selling in equities; offset by ₹12,203 Crore net buying in debt. The equity net buying had a strong IPO contribution of ₹14,248 Crore, while the FPIs sold secondary market stocks worth ₹(31,989) Crore. Bond buying was on the back of one more rate cut expectation as inflation at 2.10% touched a 77-month low.
In July 2025, Sensex fell by -2.90%, Nifty 50 ended -2.93% lower, Nifty Mid-Cap -3.92% down, and Nifty Small Cap closed -4.09% lower. The uncertainty over tariffs had left the markets in tenterhooks through the month and as the month ended, the fears were proven right as Trump subjected Indian exports to the US to 25% tariffs plus punitive tariffs for buying oil and defence equipment from Russia. The sentiments weakened sharply in July.
BENCHMARK BOND YIELDS EDGE UP FURTHER IN JULY 2025
In June, the bond yields had fallen to 6.18% after the RBI had announced a 50 bps rate cut and an additional 100 bps CRR cut. However, with the monetary policy stance being changed from accommodative to neutral, the bond yields bounced back to 6.29% levels. In July, the month started at 6.29% bond yields and gradually inched up to 6.38% levels. This is despite the fact that the consumer inflation for June came in at a 77-month low of 2.10%. With the US holding status quo on rates, the emerging view is that the RBI may also hold back on further rate cuts to avoid any damage to the rupee. The bond yield rally can also be attributed to some bond selling in the month as risk-off strategies are starting to take shape.
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Nippon India Large Cap Fund (G) | 1.571% | 21.511% | 26.225% |
| ICICI Pru Large Cap Fund (G) | 1.704% | 19.729% | 22.866% |
| HDFC Large Cap Fund (G) | -1.843% | 17.919% | 22.309% |
| Category Average | -0.980% | 16.080% | 19.305% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Nippon India Multi Cap (G) | 1.639% | 25.724% | 32.800% |
| Mahindra Manulife Multi Cap (G) | 0.570% | 23.517% | 28.270% |
| Quant Active Fund (G) | -14.565% | 15.882% | 26.445% |
| Category Average | 0.098% | 20.852% | 25.669% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Quant Flexi Cap Fund (G) | -11.663% | 21.127% | 30.282% |
| HDFC Flexi Cap Fund (G) | 6.391% | 24.230% | 29.487% |
| BOI Flexi Cap Fund (G) | -6.193% | 23.968% | 28.522% |
| Category Average | -0.881% | 17.840% | 21.580% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Motilal Oswal Mid-Cap Fund (G) | 2.579% | 30.893% | 36.545% |
| Edelweiss Mid-Cap Fund (G) | 4.710% | 27.491% | 33.069% |
| HDFC Mid-Cap Fund (G) | 2.295% | 28.577% | 32.244% |
| Category Average | -0.739% | 22.945% | 28.085% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Quant Small Cap Fund (G) | -6.528% | 28.686% | 40.193% |
| Nippon Small Cap Fund (G) | -5.181% | 26.794% | 37.303% |
| Bandhan Small Cap Fund (G) | 6.875% | 33.474% | 36.687% |
| Category Average | -1.097% | 23.372% | 32.545% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| BOI Equity and Debt Fund (G) | -1.001% | 22.216% | 27.041% |
| ICICI Pru Equity & Debt Fund (G) | 4.708% | 20.780% | 26.013% |
| Quant Aggressive Hybrid (G) | -4.435% | 15.597% | 24.288% |
| Category Average | 2.046% | 16.124% | 18.792% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| HDFC BAF (G) | 1.302% | 20.725% | 24.680% |
| Baroda BNP Paribas BAF (G) | 6.411% | 16.637% | 16.870% |
| Edelweiss BAF (G) | 1.149% | 13.786% | 15.648% |
| Category Average | 2.204% | 13.114% | 13.423% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Quant Multi-Asset Fund (G) | 6.713% | 23.084% | 28.331% |
| ICICI Pru Multi-Asset Fund (G) | 9.311% | 20.672% | 24.711% |
| Tata Multi-Asset Fund (G) | 6.452% | 17.009% | 19.187% |
| Category Average | 6.575% | 17.685% | 18.739% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Invesco India Arbitrage Fund (G) | 7.657% | 7.927% | 6.494% |
| Kotak Arbitrage Fund (G) | 7.643% | 7.868% | 6.473% |
| Edelweiss Arbitrage Fund (G) | 7.650% | 7.804% | 6.427% |
| Category Average | 7.041% | 7.170% | 5.772% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| ICICI Prudential Gilt Fund (G) | 9.698% | 9.216% | 6.895% |
| Edelweiss G-Sec Fund (G) | 7.502% | 8.083% | 6.772% |
| SBI Magnum Gilt Fund (G) | 7.833% | 8.630% | 6.512% |
| Category Average | 7.637% | 7.776% | 5.647% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| Nippon Corporate Bond (G) | 9.892% | 8.484% | 7.211% |
| Axis Corporate Debt Fund (G) | 9.910% | 8.377% | 6.921% |
| Franklin India Corporate Bond (G) | 10.727% | 8.265% | 6.894% |
| Category Average | 9.219% | 7.794% | 6.175% |
| Data Source: Morningstar | |||
Top performing Direct Plans (Growth Option) on 5-year returns (as on 31st Jul-25):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
| BOI Credit Risk Fund (G) | 6.393% | 6.124% | 26.301% |
| DSP Credit Risk Fund (G) | 23.533% | 15.626% | 12.343% |
| Baroda BNP Credit Risk Fund (G) | 9.776% | 8.803% | 10.796% |
| Category Average | 11.453% | 7.694% | 9.681% |
| Data Source: Morningstar | |||
Having seen returns for various categories of funds for July 2025, some key takeaways.
WHAT WE READ FROM THE JULY 2025 MUTUAL FUND RANKINGS
Here are some key trends we deciphered from the MF rankings for July 2025.
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