Equity mutual fund inflows have increased by 15% over the past year, reaching ₹42,700 crore in July 2025, as per ICRA Analytics. Investors continue to favour diversified options, with sectoral and thematic categories leading the pack in net inflows.
Equity mutual funds experienced a growth of ₹5,600 crore in net inflows year-on-year, rising from ₹37,100 crore in July 2024 to ₹42,700 crore in July 2025. The month-on-month jump is also notable, with inflows increasing by 81% compared to June levels, indicating a sharp uptick in investor confidence despite market uncertainties.
Among equity fund categories, sectoral or thematic funds secured the highest net inflows at ₹9,250 crore. Flexi cap funds followed closely with ₹7,650 crore, and small cap funds attracted ₹6,500 crore over the past 1 year. These numbers indicate a preference for funds offering high return potential and diversified exposure across sectors or market capitalisations.
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Equity mutual funds have displayed strong medium to long-term returns, with most categories delivering more than 15% CAGR over 3 years and 5 years. For instance, small cap funds posted a 5-year CAGR of 31.70%, while even large cap funds & mid cap funds delivered a robust 23.35%. Despite 1-year dips across many categories due to market corrections, long-term performance remains solid.
The total equity assets under management (AUM) have surged by 335% in 5 years, growing from ₹7.65 lakh crore to ₹33.32 lakh crore, reflecting sustained investor interest. This steady rise aligns with increasing retail participation and a strategic shift towards long-term financial planning through mutual funds.
Equity fund inflows have witnessed consistent growth, supported by rising investor confidence and strong long-term performance across categories. With diversified sectoral and flexi cap funds spearheading the surge, the mutual fund industry continues to scale new heights in AUM and participation.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in Mutual Funds are subject to market risks. Read all related documents carefully before investing.
Published on: Sep 1, 2025, 11:02 AM IST
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