July 2025 MF AUM at ₹75.4 Trillion, as equity fund flows bounce back

12 Aug 2025 , 10:54 AM

BIG STORY – DEBT AND EQUITY FUND FLOWS DOMINATE

After subdued overall MF inflows of ₹29,108 Crore and ₹49,095 Crore in May and June; July saw smart inflows of ₹1,78,794 Crore. Despite volatile markets, total AUM was up 1.3% at ₹75.36 Trillion on the back of robust flows. Equity fund inflows in July 2025 touched an all-time high of ₹42,702 Crore as alpha hunting was back in demand in July 2025.  NFO flows touched a record ₹30,416 Crore; while gross SIP inflows were at a record ₹28,464 Crore. Debt fund flows at ₹1,06,801 Crore was dominated by the short end of the yield curve.

Equity fund flows were focused on Sectoral / Thematic Funds, flexi-caps / Multi-Caps, small cap funds, mid-cap funds, and large & mid-cap funds. Net inflows into hybrid funds were lower than June, but still robust at ₹21,162 Crore (including solution funds). Hybrid fund demand was more broad-based. Net flows into passive funds more than doubled to ₹8,259 Crore in July 2025. What is commendable about these flows is that they come at a time when global macros are in a state of flux.

FLOWS ROBUST; OFFSET EQUITY VALUE DEPLETION

Here is a quick look at monthly flows across fund categories in last 13 months.

Month	Debt Fund Flows (₹ Crore)	Equity Fund Flows (₹ Crore)	Hybrid Fund Flows (₹ Crore)	Passive Fund Flows (₹ Crore)	Total MF Flows (₹ Crore)
Jul-24	1,19,588	37,113	17,663	14,778	1,89,141
Aug-24	45,169	38,239	10,233	14,599	1,08,123
Sep-24	(1,13,834)	34,419	5,366	3,254	(71,114)
Oct-24	1,57,402	41,887	17,189	23,428	2,39,907
Nov-24	12,916	35,944	4,443	7,061	60,295
Dec-24	(1,27,153)	41,156	4,703	784	(80,355)
Jan-25	1,28,653	39,688	9,011	10,255	1,87,551
Feb-25	(6,526)	29,303	7,050	10,249	40,063
Mar-25	(2,02,663)	25,082	(705)	14,149	(1,64,435)
Apr-25	2,19,136	24,269	14,248	20,229	2,76,827
May-25	(15,909)	19,013	20,942	5,526	29,108
Jun-25	(1,711)	23,587	23,429	3,997	49,095
Jul-25	1,06,801	42,702	21,162	8,259	1,78,794

Data Source: AMFI (negative figures in brackets)

In July 2025, equity and debt funds saw robust inflows. Debt fund flows continued at the short end of the yield curve. However, in equity funds, risk appetite seems to be back in alpha categories like sectoral funds, thematic funds, small cap funds, and mid-cap funds. Hybrid funds saw inflows of ₹21,162 Crore, with strong contributions from Arbitrage Funds, Multi Asset Allocation Funds, BAFs, and Aggressive Hybrid Funds. Equity flows bounced sharply in July to record levels. Passive fund inflows bounced to ₹8,259 Crore.

HOW THE ₹75.4 TRILLION NET AUM ADDED UP

Here is the AUM break-up as of July 2025; across equity, debt, and alternates.

Month	Debt AUM (₹ Trillion)	Equity AUM (₹ Trillion)	Alternate AUM (₹ Trillion)	Total AUM (₹ Trillion)
Jul-24	15.44	29.34	19.92	64.97
Aug-24	16.00	30.09	20.35	66.70
Sep-24	14.97	31.10	20.75	67.09
Oct-24	16.64	29.89	20.46	67.26
Nov-24	16.86	30.36	20.60	68.08
Dec-24	15.67	30.58	20.41	66.93
Jan-25	17.06	29.47	20.46	67.25
Feb-25	17.08	27.40	19.79	64.53
Mar-25	15.21	29.45	20.82	65.74
Apr-25	17.57	30.58	21.59	70.00
May-25	17.54	32.05	22.34	72.20
Jun-25	17.58	33.47	23.10	74.41
Jul-25	18.76	33.28	23.07	75.36

Data Source AMFI

For July 2025, active debt fund AUM was 21.5% higher yoy at ₹18.76 Trillion. The AUM of equity funds tapered to ₹33.28 Trillion in July 2025, as value depletion offset the advantage of record inflows. Equity fund AUM is 13.4% higher yoy. Alternate AUM is flat MOM, due to equity value depletion; but 15.8% higher yoy. Here are the AUM shares.

Month	Active Debt Funds	Active Equity Funds	Hybrid Funds	Passive Funds	Solution Funds	Close-ended Funds
Feb-25	26.47%	42.45%	13.20%	16.71%	0.75%	0.41%
Mar-25	23.13%	44.80%	13.44%	17.45%	0.78%	0.41%
Apr-25	25.10%	43.68%	13.07%	17.02%	0.75%	0.37%
May-25	24.30%	44.40%	13.23%	16.96%	0.76%	0.36%
Jun-25	23.63%	44.98%	13.33%	16.96%	0.75%	0.35%
Jul-25	24.89%	44.16%	13.31%	16.56%	0.74%	0.34%

If you take a 5-month perspective, only active debt funds have gained AUM share, while the other categories are either flat or have seen lower share. This is because, amidst the tariff tantrums, the stock markets have taken a beating and that is reflected in the depletion in equity market values. Debt funds have been largely immune.

ACTIVE DEBT FUNDS: STRONG DEMAND AT THE SHORT END

Buying in debt funds was focused at the short end of the yield curve. Debt funds saw net inflows of ₹1,06,801 Crore in July 2025. Money Market funds saw net inflows of ₹44,574 Crore, Liquid Funds ₹39,355 Crore, Low Duration Funds ₹9,766 Crore, Overnight Funds ₹8,866 Crore, Ultra Short Duration Funds ₹2,277 Crore, and short duration funds ₹1,829 Crore. Debt fund inflows were driven by recent rate cuts and expectation of liquidity boost after the 100 bps CRR cut takes effect from September. Banking & PSU Funds and Long Duration Funds saw marginal selling.

ACTIVE EQUITY FUNDS: RETURN OF RISK-ON DEMAND

In July 2025, equity funds saw record net inflows of ₹42,702 Crore; with all categories other than ELSS seeing positive inflows. Big drivers of inflows into equity funds were Multi-Cap / Flexi-Cap Funds ₹11,645 Crore, Sectoral / Thematic Funds ₹9,426 Crore, Small Cap Funds ₹6,484 Crore, Mid-Cap Funds ₹5,182 Crore, Large & Mid-Cap funds ₹5,035 Crore, and Large Cap Funds ₹2,125 Crore. The singular theme for the month was the return of risk-on.

HYBRID FLOWS ROBUST; PASSIVE SEES A BOUNCE

After strong inflows of ₹23,429 Crore in June 2025, hybrid fund net inflows were robust at ₹21,162 Crore in July 2025. Hybrid net inflows were dominated by Arbitrage Funds at ₹7,296 Crore; followed by Multi-Asset Allocation Funds at ₹6,197 Crore, BAFs at ₹2,611 Crore, Aggressive Hybrids at  ₹2,364 Crore, and Equity Savings Funds at ₹2,104 Crore. All categories of hybrid funds saw net inflows in July 2025; with allocation theme dominating.

In the passive category; inflows were dominated by Index ETFs ₹4,477 Crore followed by Index Funds at ₹2,330 Crore, and Gold ETFs at ₹1,256 Crore. Net inflows into overseas fund of funds (FOFs) were relatively muted.

There were two key trends in July 2025 MF flows. Equity funds saw the return of risk-on after a brief gap, while there is a greater focus on debt and alternate allocations. That is the good news!