Equity mutual fund inflows rose to Rs 28,973 crore in June from Rs 22,908 crore in May, signalling an improvement in investor sentiment after a softer previous month, according to data released by the Association of Mutual Funds in India (AMFI).

While equity inflows recovered month-on-month, they remained below the levels seen in March and April, when investors had invested over Rs 40,000 crore and Rs 38,000 crore, respectively. Assets under management (AUM) of equity schemes also increased to Rs 37.34 lakh crore in June from Rs 36.14 lakh crore in May.

Hybrid funds continued to attract investor interest, recording net inflows of Rs 12,893 crore, up from Rs 10,560 crore in the previous month.

Meanwhile, debt mutual funds witnessed another month of heavy outflows, with investors withdrawing Rs 1.09 lakh crore, compared with outflows of Rs 96,949 crore in May. Debt fund AUM declined to Rs 17.38 lakh crore from Rs 18.25 lakh crore during the period.

One of the notable trends in June was the sharp turnaround in Gold ETFs. After witnessing net outflows of Rs 725 crore in May, the category attracted Rs 3,443 crore in fresh investments in June, reversing the previous month's trend.

Solution-oriented schemes received Rs 321 crore, while other schemes recorded net inflows of Rs 16,724 crore. Closed-ended and interval schemes, meanwhile, saw net outflows of Rs 2,794 crore during the month.

Where equity investors put their money

Equity inflows recovered in June, but investor preferences remained largely unchanged.

Mid-cap funds remained the biggest draw for investors in June, attracting Rs 6,090 crore. Small-cap funds followed with inflows of Rs 5,602 crore, while flexi-cap funds received Rs 5,231 crore. Large- and mid-cap funds also continued to see healthy investor interest with inflows of Rs 4,321 crore, and multi-cap funds attracted Rs 3,070 crore.

One interesting trend was the continued preference for mid- and small-cap schemes. Together, these two categories attracted nearly Rs 11,692 crore, accounting for a little over 40 percent of the total equity inflows of Rs 28,973 crore during the month.

Large-cap funds also saw investor interest improve, with inflows rising to Rs 2,067 crore from Rs 1,593 crore in May. Sectoral and thematic funds more than doubled their inflows to Rs 1,469 crore, although they remained below the levels seen in March and April. ELSS funds, meanwhile, continued to witness net outflows for another month.

Debt funds remain under pressure

Debt mutual funds extended their losing streak in June, with net outflows widening to Rs 1.09 lakh crore from Rs 96,949 crore in May. This also marked the second consecutive month of heavy withdrawals from the category.

Liquid funds accounted for the biggest share of the outflows, with investors withdrawing Rs 42,293 crore during the month. Low-duration funds followed with outflows of Rs 16,484 crore, while ultra-short-duration funds saw withdrawals of Rs 11,426 crore. Money market funds and overnight funds also remained under pressure, recording outflows of Rs 10,595 crore and Rs 10,580 crore, respectively.

Only a handful of debt categories remained in positive territory. Floater funds attracted Rs 452 crore, while credit risk funds received Rs 248 crore. Most other categories, including corporate bond, gilt and banking & PSU funds, continued to witness net outflows.

Hybrid funds continue to attract money

Hybrid funds remained in favour even as overall mutual fund flows weakened.

The category attracted net inflows of Rs 12,893 crore in June, up from Rs 10,560 crore in May. Arbitrage funds continued to dominate with inflows of Rs 5,799 crore, while multi-asset allocation funds received another Rs 4,811 crore. Together, these two categories accounted for more than 80 percent of total hybrid fund inflows during the month.

Balanced hybrid funds also saw inflows improve to Rs 2,121 crore, while dynamic asset allocation funds attracted Rs 553 crore. Equity savings funds, however, recorded net outflows of Rs 495 crore.

Gold ETFs see investors return

After witnessing net outflows of Rs 725 crore in May, Gold ETFs bounced back in June with net inflows of Rs 3,443 crore.

While the latest inflows were well below January's record Rs 24,040 crore, they were higher than the Rs 2,266 crore recorded in March and suggest that investor interest in the category has returned after a one-month pause.

Aditya Agarwal, Co-founder of Wealthy.in, says "AMFI’s June 2026 data shows total mutual fund AUM at ₹82.22 lakh crore, average AUM at ₹84.18 lakh crore and total folios at 27.86 crore. However, the industry also recorded a headline net outflow of ₹52,948.78 crore during the month.

The more useful story is that this was not a broad-based withdrawal from mutual funds. Debt-oriented schemes alone saw net outflows of ₹1.09 lakh crore, led by liquid, low-duration, ultra-short-duration, money-market and overnight funds. In contrast, equity schemes received ₹28,973 crore, hybrid funds ₹12,893 crore and other schemes, including ETFs, ₹16,724 crore."