May 2025 MF AUM scales ₹72 Trillion, as hybrid funds dominate

11 Jun 2025 , 10:12 AM

BIG STORY – HYBRID FLOWS AND EQUITY ACCRETION

After robust overall MF inflows of ₹2,76,827 Crore in April, the month of May 2025 was relatively subdued with net inflows of just ₹29,108 Crore. Despite tepid flows, the overall mutual fund AUM was up 3.14% at ₹72.20 Trillion on the back of equity value accretion. Equity fund flows were below ₹20,000 Crore for the first time in the last 13 months. NFOs showed some traction at ₹4,170 Crore; while the gross SIP inflows at ₹26,688 Crore was robust; notwithstanding the SIP stoppage ratio.

Even as equity fund inflows were subdued, there was a sharp revival in the inflows into hybrid funds. After a long time, the net flows into hybrid funds were more than active equity funds. The revival in hybrid fund flows was led by arbitrage funds; a quasi-debt fund, which accounted for nearly 75% of all hybrid inflows in May 2025. Overall, hybrid fund net inflows were robust at ₹20,942 Crore (including solution funds), while passive fund net inflows were relatively subdued at ₹5,523 Crore in May 2025.

SUBDUED FLOWS, BUT BIG EQUITY ACCRETION

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)
May-24	42,295	34,697	18,456	15,665	1,11,103
Jun-24	(1,07,358)	40,608	9,039	14,602	(43,109)
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

Data Source: AMFI (negative figures in brackets)

May 2025 witnessed relative tepid flows across various categories. After record inflows in April, debt funds saw outflows of ₹(15,909) Crore. Equity fund inflows at ₹19,013 Crore; were below ₹20,000 Crore for the first time in the last 13 months. Hybrid funds saw the best inflows in last one year, led by arbitrage funds once again. Passive fund inflows were subdued at ₹5,526 Crore; even as equities overall have been in a state of flux.

HOW THE ₹72 TRILLION NET AUM ADDED UP

As of the close of May 2025, mutual funds reported 3.14% sequentially higher AUM at ₹72.20 Trillion. Here is the AUM mix for the last 13 months.

Month	Debt AUM (₹ Trillion)	Equity AUM (₹ Trillion)	Alternate AUM (₹ Trillion)	Total AUM (₹ Trillion)
Apr-24	14.59	24.74	17.66	57.26
May-24	15.12	25.40	18.13	58.91
Jun-24	14.13	27.68	19.08	61.16
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

Data Source AMFI

For May  2025, active debt fund AUM was virtually float at ₹17.54 Trillion. Debt fund AUM is up 20.2% yoy. The AUM of equity funds jumped sharply to ₹32.05 Trillion in May 2025, led by equity value accretion. It has finally crossed the September 2024 levels and is now at a new high. Equity fund AUM is 29.5% higher yoy. Alternate AUM has improved MOM, thanks to passive and hybrid funds; and is 26.5% higher yoy. Here is the AUM share in May-25.

Month	Active Debt Funds	Active Equity Funds	Hybrid Funds	Passive Funds	Solution Funds	Close-ended Funds
Dec-24	23.42%	45.68%	13.10%	16.61%	0.79%	0.40%
Jan-25	25.37%	43.82%	13.02%	16.64%	0.76%	0.40%
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%

If you take a 5-month perspective (May 2025 over December 2024), active debt funds, hybrid funds, and passive funds have gained AUM share. However, this has been offset by a corresponding fall in AUM share of active equity funds, solution funds and close-ended funds. The fall in AUM share of active equity funds is due to SIP folio reduction.

ACTIVE DEBT FUNDS: REDEMPTIONS AT THE SHORT END

Selling in debt funds was focused at the short end of the yield curve. Debt funds saw net outflows of ₹(15,909) Crore in May 2025. The redemption pressure was most prominent in just 2 categories of debt funds. Liquid funds saw net outflows of ₹(40,205) Crore and Overnight Funds saw outflows of ₹(8,120) Crore. There were several drivers of debt fund inflows in May 2025. These included Corporate Bond Funds ₹11,983 Crore, Money Market Funds ₹11,233 Crore, Low Duration Funds ₹3,134 Crore, Ultra Short Duration Funds ₹1,848 Crore, Short Duration Funds ₹1,790 Crore, and Gilt Funds ₹1,386 Crore. With the RBI cutting repo rates aggressively, there has been persistent demand for longer duration funds.

ACTIVE EQUITY FUNDS: MULTI-ASSET WAS THE FLAVOUR AGAIN

In May 2025, equity funds saw subdued net inflows of ₹19,013 Crore. Big drivers of inflows into equity funds were Multi-Cap / Flexi-Cap Funds ₹6,841 Crore, Small Cap Funds ₹3,214 Crore, Mid-Cap Funds ₹2,809 Crore, Large & Mid-Cap funds ₹2,691 Crore, and Sectoral / Thematic Funds ₹2,052 Crore. A number of equity fund categories like ELSS, dividend yield funds, and contra funds saw net outflows, although there were quite marginal.

HYBRID FUNDS FLATTER; PASSIVE FLOWS TEPID

After strong inflows of ₹14,453 Crore in April, hybrid fund built further momentum with net inflows of ₹20,942 Crore in May 2025. Hybrid net inflows were dominated by Arbitrage Fund at ₹15,702 Crore, Multi-Asset Allocation Funds at ₹2,927 Crore, and BAFs at ₹1,136 Crore. All categories of hybrid funds saw net inflows in May 2025.

In the passive category; inflows were dominated by index ETFs ₹4,087 Crore followed by Index Funds at ₹1,104 Crore. Gold funds and International FOFs saw marginal net inflows in May 2025. Compared to April 2025, the net inflows into passive funds in May 2025 were relatively tepid.

Flows were tepid overall, but that was more than compensated by the surge in market value of equity assets amidst the rally in equities. In May 2025, it was less about flows and more about value accretion contributing to the AUM growth.