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Equity Inflows Recover as Heavy Debt Redemptions Push Industry to Net Outflow

Investor money returned to equity, SIPs, hybrid and gold even as large, consecutive withdrawals from debt schemes reduced overall AUM

Overview

  • AMFI’s June data released July 10 shows equity-oriented mutual funds drew about Rs 28,973 crore in net inflows, lifting equity AUM to Rs 37.34 lakh crore.
  • Systematic Investment Plan contributions rose to Rs 31,781 crore in June, while hybrid funds attracted Rs 12,893 crore, signaling steady retail participation.
  • Gold ETFs reversed May outflows and secured roughly Rs 3,443 crore in fresh investments, and other ETFs also saw notable inflows.
  • Debt-oriented schemes recorded about Rs 1.09 lakh crore of net redemptions in June, the second large monthly withdrawal in a row, which cut debt AUM to around Rs 17.38 lakh crore and drove the industry into a net outflow.
  • The shift follows very strong equity inflows in March–April and suggests investors are reallocating from fixed-income to higher-risk or inflation-hedged assets, a trend that could affect short-term liquidity in debt funds and investor income from cash-like products.