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June 2025 MF AUM at ₹74.4 Trillion, as hybrid funds dominate again

10 Jul 2025 , 09:35 AM

BIG STORY – HYBRID FLOWS AND EQUITY MTM GAINS

After subdued overall MF inflows of ₹29,108 Crore in May, the month of June 2025 saw a surge in overall net inflows to ₹49,095 Crore. Despite modest flows, overall mutual fund AUM was up 3.1% at ₹74.41 Trillion on the back of equity value accretion. Equity fund flows improved in June 2025 to ₹23,587 Crore but despite being quarter-end, debt fund outflows were surprisingly subdued at ₹(1,711) Crore. NFO flows were tepid at ₹1,986 Crore; but the gross SIP inflows at ₹27,269 Crore created a new monthly record.

Equity fund flows were focused on flexi-caps, small caps, and mid-caps; with sector funds conspicuous by their absence. Like in May, net inflows into hybrid funds at ₹23,429 Crore (including solution funds) was at par with equity funds. Arbitrage funds accounted for 67% of overall hybrid fund inflows; like the previous 6-months median. Net flows into passive funds were mellowed at ₹3,997 Crore in June 2025. With a bullish flavour in the market, the preference clearly appears to be favouring active strategies.

FLOWS IMPROVE; EQUITY ACCRETION ROBUST

Here is a quick look at monthly flows across fund categories in last 13 months.

Month	Debt Fund Flows (₹ Crore)	Equity Fund Flows (₹ Crore)	Hybrid Fund Flows (₹ Crore)	Passive Fund Flows (₹ Crore)	Total MF Flows (₹ Crore)
Jun-24	(1,07,358)	40,608	9,039	14,602	(43,109)
Jul-24	1,19,588	37,113	17,663	14,778	1,89,141
Aug-24	45,169	38,239	10,233	14,599	1,08,123
Sep-24	(1,13,834)	34,419	5,366	3,254	(71,114)
Oct-24	1,57,402	41,887	17,189	23,428	2,39,907
Nov-24	12,916	35,944	4,443	7,061	60,295
Dec-24	(1,27,153)	41,156	4,703	784	(80,355)
Jan-25	1,28,653	39,688	9,011	10,255	1,87,551
Feb-25	(6,526)	29,303	7,050	10,249	40,063
Mar-25	(2,02,663)	25,082	(705)	14,149	(1,64,435)
Apr-25	2,19,136	24,269	14,248	20,229	2,76,827
May-25	(15,909)	19,013	20,942	5,526	29,108
Jun-25	(1,711)	23,587	23,429	3,997	49,095

Data Source: AMFI (negative figures in brackets)

The highlight of June was that the overall debt fund outflows were modest at ₹(1,711) Crore, despite this being a quarter-end. The outflows in shorter term debt funds was offset by inflows into medium tenure funds and internal flipping. Hybrid funds saw robust inflows of ₹23,429 Crore, led by arbitrage funds once again. While equity flows bounced from May levels, they are still much lower than the FY25 median. Passive fund inflows were subdued at ₹3,997 Crore; as active strategies sold better amidst the revival.

HOW THE ₹74.4 TRILLION NET AUM ADDED UP

As of the close of June 2025, mutual funds reported 3.1% sequentially higher AUM at ₹74.41 Trillion.

Month	Debt AUM (₹ Trillion)	Equity AUM (₹ Trillion)	Alternate AUM (₹ Trillion)	Total AUM (₹ Trillion)
May-24	15.12	25.40	18.13	58.91
Jun-24	14.13	27.68	19.08	61.16
Jul-24	15.44	29.34	19.92	64.97
Aug-24	16.00	30.09	20.35	66.70
Sep-24	14.97	31.10	20.75	67.09
Oct-24	16.64	29.89	20.46	67.26
Nov-24	16.86	30.36	20.60	68.08
Dec-24	15.67	30.58	20.41	66.93
Jan-25	17.06	29.47	20.46	67.25
Feb-25	17.08	27.40	19.79	64.53
Mar-25	15.21	29.45	20.82	65.74
Apr-25	17.57	30.58	21.59	70.00
May-25	17.54	32.05	22.34	72.20
Jun-25	17.58	33.47	23.10	74.41

Data Source AMFI

For June 2025, active debt fund AUM was virtually flat MOM at ₹17.58 Trillion. Debt fund AUM is up 16.3% yoy. The AUM of equity funds jumped sharply to ₹33.47 Trillion in June 2025, led by equity value accretion. Equity fund AUM is 31.8% higher yoy. Alternate AUM has improved MOM, thanks to passive and hybrid funds; and is 27.4% higher yoy. Here are the AUM shares in June 2025.

Month	Active Debt Funds	Active Equity Funds	Hybrid Funds	Passive Funds	Solution Funds	Close-ended Funds
Jan-25	25.37%	43.82%	13.02%	16.64%	0.76%	0.40%
Feb-25	26.47%	42.45%	13.20%	16.71%	0.75%	0.41%
Mar-25	23.13%	44.80%	13.44%	17.45%	0.78%	0.41%
Apr-25	25.10%	43.68%	13.07%	17.02%	0.75%	0.37%
May-25	24.30%	44.40%	13.23%	16.96%	0.76%	0.36%
Jun-25	23.63%	44.98%	13.33%	16.96%	0.75%	0.35%

If you take a 5-month perspective (June 2025 over January 2025), active equity funds, hybrid funds, and Passive Funds have gained AUM share. However, this has been offset by a corresponding fall in AUM share for active debt funds, solution funds and close-ended funds. The AUM moves have been largely driven by MTM gains in equity in this period.

ACTIVE DEBT FUNDS: LONG DEMAND AND SHORT FLIPPING

Selling in debt funds was focused at the short end of the yield curve. Debt funds saw net outflows of ₹(1,711) Crore in June 2025. Liquid funds saw net outflows of ₹(25,196) Crore, Overnight Funds saw outflows of ₹(8,155) Crore, and Gilt Funds ₹(957) Crore. Debt fund inflows in June 2025 were driven by demand at the long-end and flipping at the short-end. Major debt fund inflows included Short Duration Funds ₹10,277 Crore, Money Market Funds ₹9,484 Crore, Corporate Bond Funds ₹7,125 Crore, Low Duration Funds ₹3,136 Crore, and Ultra Short Duration Funds ₹2,944 Crore. RBI cutting repo rates aggressively; has been supportive of long end moves and short-end flipping.

ACTIVE EQUITY FUNDS: MARKET CAP MIXING WAS THE FLAVOUR

In June 2025, equity funds saw improved net inflows of ₹23,587 Crore. Big drivers of inflows into equity funds were Multi-Cap / Flexi-Cap Funds ₹8,527 Crore, Small Cap Funds ₹4,025 Crore, Mid-Cap Funds ₹3,754 Crore, Large & Mid-Cap funds ₹3,497 Crore, Large Cap Funds ₹1,694 Crore and Contra Funds ₹1,159 Crore. ELSS, funds saw net outflows, although these outflows were very nominal.

HYBRID FUNDS FLATTER; PASSIVE FLOWS SUBDUED

After strong inflows of ₹20,942 Crore in May 2025, hybrid fund net inflows touched a new high of ₹23,429 Crore in June 2025. Hybrid net inflows were dominated by Arbitrage Fund at ₹15,585 Crore; followed by Multi-Asset Allocation Funds at ₹3,210 Crore, BAFs at ₹1,886 Crore, Aggressive Hybrids at ₹1,332 Crore, and Equity Savings Funds at ₹1,073 Crore. All categories of hybrid funds saw net inflows in June; with allocation being the core theme.

In the passive category; inflows were dominated by Gold ETFs ₹2,081 Crore followed by Index Funds at ₹1,043 Crore, and Index ETFs at ₹844 Crore. Net inflows into overseas fund of funds (FOFs) were relatively muted in the month.

To sum up the story of June 2025, the AUM accretion was largely driven by MTM gains rather than by flows. However, the big theme was that hybrid funds have come of age; while debt funds saw more of flipping and less of one-sided outflows at quarter-end.

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