Hybrid mutual fund inflows jump over 160% YoY in June as investors seek balance: ICRA Analytics

Hybrid mutual funds saw record net inflows of ₹23,223 crore in June 2025, according to ICRA Analytics, citing data from the Association of Mutual Funds in India (AMFI). Inflows rose 162.26% year-on-year as investors chose hybrid schemes for a balanced risk-reward profile during volatile markets.

ICRA Analytics noted that arbitrage funds led the hybrid segment with net inflows of ₹15,585 crore. Multi-asset allocation funds added ₹3,210 crore. Balanced advantage funds brought in ₹1,886 crore.

Overall, June was a strong month for India’s mutual fund industry. AMFI data shows total Assets Under Management (AUM) rose to ₹74.41 lakh crore, up 13.2% from the previous quarter.

Equity-oriented funds stayed strong. Net inflows stood at ₹23,587 crore, 24% higher than May. Flexi-cap funds attracted ₹5,733 crore. Small-cap and mid-cap funds saw inflows of ₹4,024 crore and ₹3,754 crore respectively. ELSS funds recorded outflows of ₹556 crore as tax-season demand waned.

ICRA Analytics highlighted that robust returns from benchmark indices supported sentiment. The Nifty 50 TRI rose 3.37% and Sensex TRI gained 2.98% in June.

Debt funds saw moderate outflows. Net outflows stood at ₹1,711 crore, far below May’s ₹15,908 crore. Short-duration, money market and corporate bond funds saw inflows of ₹10,277 crore, ₹9,484 crore and ₹7,124 crore respectively. Liquid funds posted outflows of ₹25,196 crore due to quarter-end redemptions.

Systematic Investment Plans (SIPs) continued to anchor retail flows. Monthly SIP contributions touched a record ₹27,269 crore. Active SIP accounts rose to 9.19 crore by June-end. ICRA Analytics said rising financial literacy, steady equity returns and digital access drive SIP popularity.

Analysts expect the mutual fund industry to remain on a growth path with steady SIP inflows, diversified participation and supportive market conditions.