Equity Mutual Funds Log Historic ₹4.17 Lakh Crore Net Inflows in FY25

The Indian mutual fund industry marked an unprecedented milestone in FY25, with equity-oriented schemes receiving record-breaking net inflows of ₹4.17 lakh crore. This figure more than doubled the inflows from the previous fiscal year (₹1.84 lakh crore in FY24), representing a staggering 127% year-on-year surge.

This surge reflects a heightened investor interest in equity markets, supported by positive market sentiment, increasing retail participation, and a broader acceptance of mutual funds as a long-term investment vehicle.

Sectoral/Thematic Funds Take the Spotlight

Among all equity fund categories, sectoral and thematic funds attracted the highest net inflows, totalling ₹1.47 lakh crore during FY25. This segment recorded a remarkable 218% growth in net inflows compared to the previous year.

Investors appeared to be aligning their investments with structural and thematic trends, possibly viewing specific sectors as long-term growth opportunities. This trend significantly contributed to the massive rise in equity inflows.

Strong Inflows Across Equity Fund Categories

Aside from sectoral/thematic funds, other equity categories also witnessed significant interest from investors:

• Flexi cap funds attracted net inflows of ₹49,580 crore.

• Multi cap funds followed closely with ₹42,282 crore.

• Small cap, mid cap, and large & mid cap funds each recorded healthy inflows exceeding ₹40,000 crore.

These figures suggest broad-based confidence across the equity fund spectrum, cutting across different market capitalisation segments.

Noteworthy Growth in Assets Under Management (AUM)

The rise in net inflows also translated into notable growth in assets under management (AUM) across several fund categories:

• Sectoral/thematic funds saw the highest AUM growth of 51.59%.

• Multi cap funds followed with a growth of 37.87%.

• Large & mid cap funds posted a 25.82% increase in AUM.

This growth not only reflects new investments but also the capital appreciation achieved during the financial year.

Read More: Lowest Mutual Fund Equity Deployment Since July 2023 Recorded in March 2025

Open-Ended Schemes Witness Broad-Based Surge

Across all open-ended mutual fund categories, net inflows surged to ₹8.18 lakh crore in FY25, up from ₹3.68 lakh crore in FY24. This 122% increase points to a broader trend of investor preference for managed funds across debt, equity, and hybrid products.

The data underlines the mutual fund industry’s expanding role in channelising household savings into capital markets.

Conclusion

FY25 stands out as a historic year for the Indian mutual fund industry, especially for equity-oriented schemes. The record inflows and growth in AUM across multiple categories reflect growing investor confidence and a shift towards long-term market participation. While several factors may have contributed to this momentum, the industry’s continued evolution and investor education efforts have played a crucial role in achieving this milestone.

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