Mutual Fund Inflows Hit Record ₹42,702 Crore in July Driven by NFOs and Thematic Bets

Equity mutual fund inflows surged to an all-time high of ₹42,702 crore in July, nearly doubling from June's ₹23,587 crore, fueled by aggressive new fund offers (NFOs). The industry mobilized ₹30,416 crore through NFOs, with thematic funds leading at ₹9,426 crore in inflows—a stark jump from ₹476 crore the prior month. Flexi-cap and small-cap strategies followed, absorbing ₹7,654 crore and ₹6,484 crore respectively.

Seven thematic NFOs alone accounted for ₹7,404 crore of the total, underscoring investor appetite for niche strategies. Mid-cap funds attracted ₹5,182 crore, while large-and-mid-cap hybrids saw ₹5,035 crore. Aditya Birla SUN Life AMC's CEO highlighted the trend as evidence of deepening market sophistication, with sectoral and capitalization-specific products gaining traction.

The industry's average assets under management (AUM) now exceed ₹75 lakh crore, positioning it to breach the ₹100 lakh crore milestone. This momentum coincides with rising retail participation in structured investment vehicles—a trend that mirrors growing institutional interest in diversified growth assets globally.