NFO Mania & Thematic Gambles Fuel Record ₹42,702 Crore Mutual Fund Influx in July

Investors go all-in on new fund offers and niche strategies—because who needs diversification when you’ve got FOMO?

July’s mutual fund numbers scream speculative frenzy. Thematic funds and NFOs pulled in a jaw-dropping ₹42,702 crore, proving once again that retail investors will chase shiny objects faster than a bull market turns into a bear trap.

Behind the numbers: A cocktail of low financial literacy and high-risk appetite. Asset managers keep minting hyper-specific products while investors ignore the oldest rule in finance—past performance is about as reliable as a crypto influencer’s ‘100x guaranteed’ tweet.

The bottom line? When the tide turns, these thematic darlings will drown first. But hey—at least the fund houses collected their fees upfront.

Thematic funds on top

Thematic funds received the highest inflow of ₹9,426 crore (₹476 crore), followed by flexi and smallcaps at ₹7,654 crore (₹5,733 crore) and ₹6,484 crore (₹4,024 crore), respectively, according to data released by the Association of Mutual Funds in India on Monday.

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Mid-cap schemes attracted investment of ₹5,182 crore (₹3,754 crore) while large and mid-cap funds recorded an inflow of ₹5,035 crore (₹3,497 crore).

Seven thematic funds NFOs alone mopped up ₹7,404 crore.

Expert view

A Balasubramanian, Managing Director & CEO, Aditya Birla SUN Life AMC, said the rise in midcap, smallcap and sectoral fund participation signals a growing appetite for diversified growth.

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With the average AUM surpassing ₹75 lakh crore, the industry is on track to achieve the ₹100 lakh crore goal as a whole.

In a heightened period of uncertainty, this is a testament to the resilience and maturity of both markets and investors, he added.

Published on August 11, 2025