Net inflows into equity mutual funds fell 14.8% month-on-month to Rs 24,697 crore in July 2026, from Rs 28,973 crore in June, according to the Association of Mutual Funds in India (AMFI).

This means investors put Rs 4,276 crore less into equity mutual funds in July compared with June. The fall was mainly due to lower inflows in large-cap, large & mid-cap, focused and flexi-cap funds.

Large-cap funds saw a sharp change in investor flows in July. The category saw a net outflow of Rs 1,322 crore, compared with a net inflow of Rs 2,067 crore in June. In percentage terms, the change was about 164% compared with June’s inflow.

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Focused funds also saw a sharp fall. Net inflows dropped 42.6% to Rs 642 crore in July from Rs 1,118 crore in June 2026.

Large & mid-cap funds saw net inflows falling 20.7% to Rs 3,425 crore in July from Rs 4,321 crore in June.

Flexi-cap funds also saw lower inflows in July. The category received Rs 4,709 crore, down from Rs 5,231 crore in June. This is a fall of around 10%.

Net inflows into sectoral and thematic funds fell 9.6% to Rs 1,328 crore in July from Rs 1,469 crore in June.

ELSS funds continued to see withdrawals, with outflows widening 51.3% to Rs 959 crore in July from Rs 634 crore in June. Value and contra funds also saw a sharp reversal, moving from a Rs 687 crore inflow in June to a Rs 145 crore outflow in July.

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Small-cap funds buck the trend; inflows jump 39%

Small-cap funds bucked the trend, with inflows rising 38.7% to Rs 7,768 crore in July from Rs 5,602 crore in June.

Mid-cap funds saw a small 1.7% rise in inflows to Rs 6,192 crore from Rs 6,090 crore, while multi-cap funds saw inflows rise 5.1% to Rs 3,227 crore from Rs 3,070 crore.

Equity fund AUM rises 2.7%

The AUM of equity-oriented schemes rose to Rs 38.36 lakh crore in July from Rs 37.34 lakh crore in June. This is an increase of around Rs 1.02 lakh crore or 2.7%.

Hybrid funds see 11% fall in inflows

Hybrid mutual funds saw net inflows of Rs 11,491 crore in July, down from Rs 12,893 crore in June, a fall of 10.9% month-on-month. The category saw mixed trends, with arbitrage funds seeing higher inflows, while dynamic asset allocation funds moved into outflows.

Dynamic asset allocation funds see sharp reversal: Net inflows in dynamic asset allocation/balanced advantage funds fell from Rs 553 crore in June to an outflow of Rs 252 crore in July, a drop of about Rs 806 crore.

Arbitrage funds saw net inflows rise 12.1% to Rs 6,502 crore in July from Rs 5,799 crore in June 2026.

Net inflows into multi-asset allocation funds fell 22% to Rs 3,753 crore in July from Rs 4,811 crore in the previous month.

Conservative hybrid funds moved from a Rs 103 crore inflow in June to a Rs 22 crore outflow in July, a drop of about Rs 125 crore.

Hybrid fund AUM rises 2.1%

Hybrid funds saw their AUM rise to Rs 11.68 lakh crore in July from Rs 11.44 lakh crore in June. This is an increase of around Rs 23,817 crore or 2.1%.

Debt funds swing from outflow to strong inflow

Debt-oriented funds saw a major change in July. The category recorded a net inflow of Rs 1,87,511 crore, compared with a net outflow of Rs 1,09,054 crore in June. This is an improvement of about Rs 2,96,565 crore in one month.

Liquid funds saw a sharp reversal, moving from a Rs 42,293 crore outflow in June to a Rs 1,19,066 crore inflow in July. This is an improvement of about Rs 1,61,359 crore.

Overnight funds also saw a sharp reversal. The category moved from a Rs 10,580 crore outflow in June to a Rs 40,413 crore inflow in July, an improvement of about Rs 50,992 crore.

Corporate bond funds saw their net outflow fall to Rs 785 crore in July from Rs 7,557 crore in June, an improvement of around 90%.

Low-duration funds moved from a Rs 16,484 crore outflow in June to a Rs 988 crore inflow in July, an improvement of about Rs 17,472 crore.

Debt fund AUM jumps 11.3%

Debt-oriented funds saw the biggest rise in AUM. Their AUM increased to Rs 19.33 lakh crore in July from Rs 17.38 lakh crore in June. This is an increase of around Rs 1.96 lakh crore or 11.3%.

Other funds see 25% fall in net inflows

Other schemes, which include index funds, gold ETFs, other ETFs and overseas fund of funds, saw combined net inflows of Rs 12,517 crore in July, down from Rs 16,724 crore in June. This is a fall of around Rs 4,207 crore or 25.2%.

Within this group, index funds moved from a net outflow of Rs 59 crore in June to an inflow of Rs 1,537 crore in July. Gold ETFs saw inflows fall 54.7% to Rs 1,559 crore from Rs 3,443 crore. Other ETFs also saw inflows fall 28.1% to Rs 9,512 crore from Rs 13,238 crore. Overseas fund of funds moved from a Rs 102 crore inflow in June to a Rs 90 crore outflow in July.

Other schemes AUM rises 2%

Other schemes, including index funds, gold ETFs, other ETFs and overseas fund of funds, saw their combined AUM rise to Rs 15.61 lakh crore in July from Rs 15.30 lakh crore in June. This is an increase of around Rs 30,593 crore or 2%.

SIP data

SIP contributions remained above the Rs 30,000-crore level for the 5th consecutive month with Rs 31,961 crore in July, marginally higher than the Rs 31,781 crore recorded in June. This is a surge of Rs 180 crore, or around 0.57% on a month-on-month basis.

Overall AUM: Mutual fund assets rise 4.3% in July

Overall, the mutual fund industry’s AUM stood at Rs 85,75,657 crore, or about Rs 85.76 lakh crore, as on July 31, 2026, compared with Rs 82,22,480 crore or Rs 82.22 lakh crore as on June 30, 2026. This means the industry’s total AUM increased by about Rs 3.53 lakh crore or 4.3% month-on-month.

Disclaimer: The data, figures, and insights presented in this article are based on the latest monthly report released by the Association of Mutual Funds in India for July 2026. Mutual fund investments are subject to market risks, and past inflows, outflows, or fund performance do not guarantee future returns. The information is intended for educational and informational purposes only and should not be construed as investment advice. Investors should consult a qualified financial advisor before making any investment decisions.

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