MFs: Investors Increasing Risk Appetite
Equity-oriented schemes flow rebounded in June, with net inflows of around Rs28,000 crore, however the number was lower than seen in previous months, flows averaged Rs35000 crore in preceding three months to May
Umesh Sharma, CIO- Debt, The Wealth Company Mutual Fund
FinTech BizNews Service
Mumbai, July 11, 2026: Association of Mutual Funds in India (AMFI) has on Friday released MF industry’s Monthly Data for June 2026.
Mutual Fund Industry’s Net AUM stands at Rs 82,22,480.04 crores for the month of June 2026. Net AUM for the month of May 2026 was Rs Rs 81,58,341.65 crores.
Ø The AAUM for the month of June 2026 is Rs 84,18,485.59 crores
Ø Mutual Fund Folios are at 27,85,99,182 crores as of June 2026 with 20.31 lakh net folios being added during the month. Taking the total to 27.86 crore, up 0.7% from 27.66 crore in May.
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Umesh Sharma, CIO- Debt, The Wealth Company Mutual Fund, states:
Debt-oriented schemes recorded a substantial net outflow of Rs1,09,053 crore in June 2026, primarily driven by heavy redemptions in ultra-short-term categories to meet predictable, seasonal quarter-end institutional liquidity requirements. However, what was interesting was redemption in schemes like short duration and corporate bond funds etc. despite expectation of these schemes doing well post measures announced by RBI Monetary Policy Committee(MPC).
Equity-oriented schemes flow rebounded in June, with net inflows of around Rs28,000 crore compared to over Rs22,000 crore in May, however the number was lower than seen in previous months, flows averaged 35000 crore in preceding three months to May. Interestingly, investor preference shifted more towards the broader market, as mid-cap and small-cap gained highest inflows with slight moderation seen in otherwise investor favourite flexi-cap funds. This signals increased risk appetite from investors.
Hybrid scheme inflows increased marginally to nearly Rs13,000 crore, led by robust demand for arbitrage and multi-asset allocation categories. This trend underscores a sustained investor preference for diversified, lower-volatility strategies amid broader market shifts. Concurrently, inflows into other ETFs picked up significantly, while gold ETFs show renewed buying as buyers capitalized on recent price corrections
June trends reflected tighter liquidity conditions as can be seen from outflows from fixed income categories. However, retail investors sentiment remained highly risk on, driving substantial asset allocation into top-performing categories. Capital inflows consistently favored mid-cap and small-cap equity funds, which continue to outpace broader benchmarks and sustain strong earnings momentum. Simultaneously, market participants capitalised on tactical entry points, aggressively increasing allocations to domestic gold ETFs following recent price corrections.”