SIPs, mutual fund inflows reach new highs in July despite market uncertainty: AMFI report

July 2025 was a landmark month for India’s mutual fund industry, setting new records for both inflows and overall assets under management (AUM). Data released by the Association of Mutual Funds in India or AMFI on August 11, 2025, tells a story of growing investor participation and a broadening range of opportunities across equity, debt, and hybrid categories.

Here are some highlights of AMFI’s report:

AUM grows despite market volatility

Despite a small decline in the stock market, July 2025 remained a strong month for mutual funds. Industry assets under management (AUM) rose by 1.3% to ₹75.36 lakh crore, up from ₹74.41 lakh crore in June.

Interestingly, the Nifty 50 TRI and BSE Sensex TRI both fell approximately 2.7% in July, showing that investor contributions, rather than rising prices, drove the growth in AUM.

In particular, robust participation from domestic institutions contributed to this growth, even as foreign institutional investors’ outflows exceeded inflows.

Debt funds led the way, accounting for 60% of the ₹1.79 lakh crore net inflows. This, in large part, was due to institutional investments that often come in after quarterly tax payments. Equity funds also had a standout month, pulling in ₹42,702 crore — their highest-ever monthly inflow.

While foreign investors sold Indian stocks during the month, strong buying from domestic institutions kept market sentiment steady.

For investors, the takeaway is clear: even when markets are down, disciplined and steady investing may help you build wealth over time.

SIPs reach another milestone

Systematic Investment Plans (SIPs) continued their upward march in July, reaching a new high of ₹28,464 crore in monthly contributions – a 22% annual growth compared to July 2024. The month-on-month increase from June 2025 was 4.34%. The number of active SIP accounts also grew by 5.4%, crossing 9.11 crore.

The growing SIP base is a sign that disciplined investing and a focus on the potential for long-term wealth creation is gaining traction among Indians.

Equity funds top the list

Equity schemes attracted their highest ever monthly inflows of ₹42,702 crore.

Of these, the highest share went to sectoral/thematic funds, with net inflows of ₹9,426 crore, followed by flexi cap funds, with ₹7,654 crore. Small cap, mid cap, and large and mid cap categories all set new records, signalling robust retail participation and optimisation in the potential for domestic growth.

However, the equity market could not sustain its upward momentum due to uncertainties surrounding global economy and trade. Equity AUM declined 0.6% on-month to Rs 33.28 lakh crore in July from Rs 33.47 lakh crore.

The month also welcomed 10 new fund offers (NFOs), collectively mobilising nearly ₹9,000 crore and expanding the choice set for investors. Among these was Bajaj Finserv AMC’s Bajaj Finserv Small Cap Fund, the NFO period for which ran from June 27, 2025, to July 11, 2025. (Click here to know more about the fund).

Debt funds reach highs

Debt funds saw their AUMs climb to ₹18.76 lakh crore, the highest on record. This was driven by a combination of inflows and mark-to-market gains.

Money market funds led the segment, posting a 16% rise in AUM and netting ₹44,574 crore — the largest month-on-month increase among all categories.

Hybrid funds gain some ground

The AUM of hybrid funds rose to ₹10.03 lakh crore, with monthly inflows of ₹20,879 crore.

What to watch out for

In coming months, investors may consider keeping an eye on the following factors that could, among other things, influence market conditions.

• Global geopolitical tensions
• Commodity price swings
• Changes in global interest rate cycles

These factors could create volatility, making diversification and discipline essential for risk management.

The bottom line

July 2025 marked a strong month for mutual fund flows, with records set across multiple categories despite geopolitical uncertainties, FII outflows and market dips. This underlines the role consistent participation can play in navigating different market conditions.

Record inflows, a surge in SIP participation, and strong demand across equity, debt, and hybrid funds point to the possibility of a deepening investment culture in India.

While global uncertainties and market swings may persist for some months, staying diversified, reviewing your portfolio regularly, and aligning your investments to your time horizon and risk tolerance can help you remain more prepared for periods of volatility.

Source: AMFI Monthly Note, July 2025

Past performance may or may not be sustained in future