Record-Breaking Inflows: Equity-Oriented Mutual Funds Thrive Amid Market Volatility

Equity-oriented mutual funds reported a record monthly inflow of Rs 42,702 crore in July, driven by thematic and flexi cap funds, amid market volatility. The inflows signify a resurgence of domestic risk appetite and highlighted the continued strength of India’s growth story amid global trade tensions.

Equity-oriented mutual funds achieved their highest-ever monthly net inflow in July, totaling Rs 42,702 crore, largely fueled by contributions from thematic and flexi-cap funds. This surge occurred despite significant market volatility stemming from ongoing trade disputes between India and the United States.

The 81% increase from June's Rs 23,587 crore inflow indicates a clear resurgence in domestic risk appetite among Indian investors. Notably, July marked the 53rd consecutive month of positive net inflows into equity-oriented mutual funds.

In addition to equities, debt funds demonstrated a strong recovery with Rs 1.06 lakh crore inflows, while Gold ETFs continued to attract investors, reflecting its role as a hedge against macroeconomic uncertainties.