June 2025 quarter sees record mutual fund inflows of ₹3.55 Trillion

10 Jul 2025 , 09:47 AM

MUTUAL FUND FLOWS IN JUNE 2025 QUARTER – MACRO VIEW

What is the macro picture of quarterly flows for June 2025? The gross flows into open ended funds in June 2025 quarter stood at ₹37.30 Trillion while the redemptions of open ended funds in the quarter stood at ₹33.73 Trillion; resulting in net inflows into open ended funds to the tune of ₹3.57 Trillion. Close-ended funds saw negative flows in the quarter, due to selective redemption pressures. The overall net inflows into mutual funds in the June 2025 quarter stood at ₹3.55 Trillion, largely triggered by debt funds.

Macro picture of mutual fund flows in June 2025 quarter
Fund Category	Funds Mobilized	Redemptions	Net Flows	Net AUM (Jun-25)
Open Ended Funds	₹37,29,803 Crore	₹33,72,840 Crore	₹3,56,963 Crore	₹74,14,846 Crore
Close Ended Funds	₹49 Crore	₹1,982 Crore	₹(1,933) Crore	₹25,825 Crore
Mutual Funds Overall	₹37,29,853 Crore	₹33,74,823 Crore	₹3,55,030 Crore	₹74,40,671 Crore

Data Source: AMFI

As of the close of the June 2025 quarter, net AUM of Indian mutual funds stood at ₹74.41 Trillion; compared to ₹65.74 Trillion, ₹66.93 Trillion, and ₹67.09 Trillion in last 3 sequential quarters. Thanks to a mix of debt fund flows and equity price accretion in the June quarter, the AUM is up 13.2% QOQ.

DEBT FUND FLOWS IN JUNE 2025 QUARTER

Flows into Debt Funds in the Jun-25 quarter (AMFI)
Funds Mobilized	Redemptions	Net Flow	Net AUM (Jun-25)
₹33.27 Trillion	₹31.25 Trillion	₹2.02 Trillion	₹17.58 Trillion

Data Source: AMFI

June 2025 has been one of the best quarters in terms of debt fund flows with net inflows at ₹2.02 Trillion. Even in a month like June, which is the end of the quarter, debt funs saw more of internal flipping rather than outflows. Also, some of the longer dated instruments like corporate bond funds have seen robust inflows in the quarter.

What were the positive and negative drivers of flows in June 2025 quarter? Among the big inflow stories were Liquid Funds ₹53,254 Crore, Money Market Funds ₹52,214 Crore, Ultra Short Duration Funds ₹31,525 Crore, Corporate Bond funds ₹22,566 Crore, Short Duration Funds ₹16,830 Crore, Low Duration Funds ₹15,641, and Overnight Funds ₹7,626 Crore. What about outflows? Only Credit Risk Funds saw net outflows of ₹(718) Crore in the June 2025 quarter. Other outflow figures were marginal.

How does AUM of debt funds compare? Total AUM of active debt funds at the close of June 2025 stood at ₹17.58 Trillion; compared to ₹15.21 Trillion, ₹15.67 Trillion, and ₹14.97 Trillion in last 3 sequential quarters. What about share of debt fund net AUM in overall AUM. As of June 2025 end, the share of debt fund AUM stood at 23.71%; compared to 23.13%, 23.42%, and 22.32% in last 3 sequential quarters.

COLOUR OF EQUITY FUND FLOWS IN JUNE 2025 QUARTER

Flows into Equity Funds in the Jun-25 quarter (AMFI)
Funds Mobilized	Redemptions	Net Flow	Net AUM (Jun-25)
₹1,70,297 Crore	₹1,03,428 Crore	₹66,869 Crore	₹33.47 Trillion

Data Source: AMFI

Net flows into equity funds in the June 2025 quarter stood at ₹66,869 Crore; compared to ₹94,073 Crore, ₹1,18,986 Crore, and ₹1,09,772 Crore in the previous 3 sequential quarters. Clearly, the pace of equity flows have slowed substantially in the June quarter and that could be attributed to market volatility, reduced NFOs, and investor preference shifts.

The inflow story in the quarter was led by Multi-Cap / Flexi-Cap Funds at ₹23,461 Crore. This was followed by Small Cap funds at ₹11,239 Crore, Mid-Cap funds ₹9,877 Crore, Large & Mid-cap funds ₹8,740 Crore, Large Cap Funds ₹5,616 Crore, and Sectoral / Thematic funds at ₹4,529 Crore. Only ELSS funds saw net outflows in the June 2025 quarter.

Total AUM of equity funds as of June 2025 stood at ₹33.47 Trillion; compared to ₹29.45 Trillion, ₹30.58 Trillion, and ₹31.11 Trillion in previous 3 sequential quarters. The AUM recovery has been substantially led by MTM gains in equity during this period. For the June 2025 quarter, AUM share of equity funds stood 45.1%; compared to 44.8%, 45.7%, and 46.4% in the previous 3 sequential quarters.

HYBRID FUND FLOWS IN JUNE 2025 QUARTER

Flows into Hybrid Funds in the Jun-25 quarter (AMFI)
Funds Mobilized	Redemptions	Net Flow	Net AUM (Jun-25)
₹1,33,439 Crore	₹74,614 Crore	₹58,825 Crore	₹10.48 Trillion

Data Source: AMFI

In June 2025 quarter, hybrid fund (including solution funds) saw net inflows of ₹58,825 Crore; the best net inflows seen by hybrid funds in any quarter till date. Which category of funds dominated net inflows into hybrid funds in June 2025 quarter? Arbitrage funds dominated the quarterly hybrid flows at ₹43,077 Crore; followed by Multi Asset Allocation Funds (MAAF) ₹8,243 Crore, Balanced Advantage Funds (BAF) ₹3,903 Crore, Balanced Hybrid Funds ₹1,521 Crore, and Equity Savings Funds ₹1,500 Crore. In June 2025 quarter, conservative hybrid funds saw marginal net outflows.

Total AUM of hybrid funds (including solution funds) in June 2025 quarter stood at ₹10.48 Trillion; compared to ₹9.35 Trillion, ₹9.29 Trillion, and ₹9.29 Trillion in previous 3 sequential quarters. AUM share of hybrid funds in overall AUM in June 2025 stood at 14.14%; compared to 14.22%, 13.89%, and 13.84% in previous 3 sequential quarters.

PASSIVE FUND FLOWS IN JUNE 2025 QUARTER

Flows into Passive Funds in the Jun-25 quarter (AMFI)
Funds Mobilized	Redemptions	Net Flow	Net AUM as of Jun-25
₹99,538 Crore	₹69,785 Crore	₹29,753 Crore	₹12.62 Trillion

Data Source: AMFI

Passive funds saw the intensity of flows weaken in June 2025 quarter. Net inflows into passive funds in Jun-25 quarter stood at ₹29,753 Crore; compared to ₹34,653 Crore, ₹31,274 Crore, and ₹32,631 Crore in previous 3 sequential quarters. Let us now turn to how the various categories of passive funds saw flow traction in June 2025 quarter.

There was strong positive traction in index ETFs which saw net inflows of ₹23,988 Crore followed by index Funds at ₹3,703 Crore while gold ETFs saw net inflows of ₹2,367 Crore in the June 2025 quarter. In terms of AUM share in the June 2025 quarter, passive funds had an AUM share of 17.02%; compared to 17.45%, 16.61%, and 17.08% in last 3 sequential quarters. The share of passive funds has been virtually flat in last one year.

WHAT WE READ FROM THE JUNE 2025 QUARTERLY REPORT?

The June 2025 quarter had some interesting takeaways for investors.

• Debt funds saw the best quarterly inflows ever; with June quarter seeing more of internal flipping rather than serious outflows.
• In equity funds, the alpha hunting narrative has clearly shifted out of sectoral and thematic funds to fund selection based on capitalization; with preference for a mix.
• While NFOs have been tepid in June 2025 quarter, SIPs have been hitting record highs, even as the SIP stoppage ratio has largely normalized.