New Delhi, Aug 11: In a significant revelation, net equity inflows into mutual funds have recorded a decline of 14.8 per cent month-on-month to Rs 24,685 crore in July 2026 from Rs 28,961 crore in June, according to data released by the Association of Mutual Funds in India (AMFI).
Large-cap funds witnessed a net outflow of Rs 1,322 crore in July, marking their first monthly outflow since October 2023.
The category had attracted Rs 2,067.5 crore in June. The July outflow represents a month-on-month swing of Rs 3,389.5 crore in net flows for large-cap funds.
In contrast, small-cap funds saw stronger investor interest, with net inflows rising to Rs 7,767.5 crore in July from Rs 5,602 crore in June. Mid-cap funds also recorded a marginal increase in inflows, attracting Rs 6,192 crore in July compared with Rs 6,090.2 crore in the previous month.
SIP
Systematic Investment Plan (SIP) contributions continued their upward trajectory in July, rising to a record Rs 31,961 crore from Rs 31,781 crore in June.
The monthly contribution also registered a 12.3 per cent year-on-year increase, underscoring the continued resilience of India’s retail investment base despite fluctuations in equity markets.
More importantly, the improvement in SIP stoppages points to a strengthening commitment among investors to stay invested.
Around 61.44 lakh new SIPs were registered in July, while 50.29 lakh SIPs matured or were discontinued, taking the SIP stoppage ratio to 81.9 per cent, down from around 91 per cent in June.
Debt-oriented mutual fund schemes witnessed a sharp reversal in investor flows in July 2026, attracting net inflows of Rs 1,87,511 crore after recording outflows of Rs 1,09,054 crore in June.
The recovery was led by highly liquid categories, with Liquid Funds accounting for the bulk of the inflows at Rs 1,19,066 crore. Overnight Funds attracted Rs 40,413 crore, while Money Market Funds received Rs 21,180 crore during the month.
The strong inflows into these categories came after sizeable withdrawals in June, pointing to a reversal in quarter-end treasury movements.
The trend suggests that institutional investors continue to favour liquid and low-duration instruments for short-term cash management.
ETF
Gold exchange-traded funds (ETFs) continued to attract fresh investor money in July, marking their second consecutive month of net inflows.
However, the pace of buying moderated sharply, suggesting that the strong demand seen in June may be losing some momentum.
Gold ETFs received net inflows of Rs 1,559 crore in July, nearly 55 per cent lower than the Rs 3,443 crore garnered in June. The category had returned to positive territory in June after witnessing net outflows of Rs 725 crore in May.
While July’s inflows keep gold ETFs firmly in positive territory for a second consecutive month, the sharp month-on-month decline points to a significant moderation in fresh allocations. (BVI)
