India’s mutual fund industry continued its upward trajectory in July, with equity schemes reaching a historic ₹48.5 lakh crore amid growing investor confidence in stock-linked products despite market volatility.
India’s mutual fund industry continued to tilt more heavily towards equities in July, with assets in equity schemes touching a record ₹48.5 lakh crore, according to the National Stock Exchange’s latest Market Pulse report. The figures meant equity funds accounted for 56 per cent of the industry’s average assets under management, underlining how investor money has kept flowing into stock-linked products even as some parts of the market have turned choppier.
The NSE said active equity schemes expanded 13.3 per cent from a year earlier and made up nearly 78 per cent of all equity assets. Within that segment, flexi-cap funds remained the biggest category, holding 15.6 per cent of equity assets, followed by thematic funds at 14.6 per cent, mid-cap funds at 13.6 per cent and small-cap funds at 11.5 per cent. Together, those four categories represented more than half of equity assets, showing how broad-based the shift into market-linked funds has become.
Investor appetite through systematic investment plans also stayed firm. Monthly SIP contributions came to ₹31,961 crore in July, above ₹30,000 crore for a fifth straight month, while cumulative SIP contributions in the first four months of FY27 reached ₹1.3 lakh crore, up 15.4 per cent year on year. SIP assets crossed ₹18 lakh crore for the first time, rising to ₹18.2 lakh crore and accounting for 21.1 per cent of total industry assets.
The broader industry picture was not uniformly strong. Data cited by Business Standard and Kotak Neo showed equity fund inflows fell 15 per cent month on month to ₹24,697 crore in July, even though small-cap funds drew a record ₹7,768 crore and mid-cap and flexi-cap funds also attracted sizeable flows. Passive funds also hit a record, with assets rising to ₹15.5 lakh crore, while debt fund assets slipped 0.4 per cent from a year earlier to ₹21.7 lakh crore, reflecting a softer backdrop outside equities.
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