Debt-Oriented MF Schemes Saw A Sharp Reversal


Vision Of MFs On AMFI Data


Vishal Jain, CEO, Zerodha Fund House

FinTech BizNews Service

Mumbai, August 10, 2026: Association of Mutual Funds in India (AMFI) has today released MF industry’s Monthly Data for July 2026. 

Highlights AMFI Mutual Fund Industry Monthly Data July 2026

  • Mutual Fund Industry’s Net AUM stands at Rs 85,75,656.52 crores for the month of July 2026. Net AUM for the month of June 2026 was Rs 82,22,480.04 crores   
  • The AAUM for the month of July 2026 is Rs 86,33,798.38 crores    
  • Mutual Fund Folios are at 28,08,65,000 crores as of July 2026 with 22.66 lakh net folios being added during the month, up 0.8% from 27.86 crore in June.

https://fintechbiznews.com/finserv-mf-amcs/sip-assets-constitute-212-of-mf-industrys-aum-

Here are leaders of the MF industry reflecting on the AMFI July 2026 Data:   

Mr. Navneet Munot, MD & CEO of HDFC AMC:


Monthly SIP flows have stayed above Rs 30,000 crore. Every bout of volatility this year has been met with the patience and long-term thinking that wealth creation requires. This discipline, repeated month after month by crores of Indian households, is quietly turning household savings into the deepest pool of capital our markets have ever had.

Mr. Vishal Jain, CEO, Zerodha Fund House:

Life Cycle Funds, ETFs Gain Momentum

"The LifeCycle Fund category was introduced in June 2026. Life Cycle Funds bring a broader goal-based perspective to investing. Their key benefit lies in aligning asset allocation with an investor’s time horizon through a pre-defined path that gradually becomes more conservative as the target date approaches. This can help investors stay disciplined through different stages of their financial journey, without having to make repeated decisions on when to adjust their risk exposure.

ETFs can be a simple and efficient way to build diversified exposure across asset classes, sectors and geographies. They give investors the flexibility to fine-tune their asset allocation while keeping portfolios transparent and cost-efficient. Contributing more than 50% to the overall net inflow to passive investments in the month of July 2026, net inflow in domestic equity-oriented ETFs were recorded at INR 6,824.32 crores."

Umesh Sharma, CIO - Debt, The Wealth Company Mutual Fund:


Debt-oriented mutual fund schemes witnessed a sharp reversal in July 2026 following the sizeable quarter-end redemption cycle in June. The short end of the yield curve saw a return of institutional liquidity, with ultra-short duration, low-duration, money market and short-duration funds recording net inflows, reflecting the largely seasonal nature of the June outflows. Duration-oriented categories continued to witness redemptions, albeit at a significantly lower pace, as markets reassessed the impact of higher energy prices, monsoon-related inflation risks and evolving liquidity conditions following recent RBI measures.

Equity fund flows slightly moderated and remained increasingly broad-based. Mid-cap funds continued to attract robust inflows of Rs6,192 crore, while small-cap funds saw stronger inflows of Rs7,768 crore, highlighting investors' willingness to participate beyond the large-cap universe. In contrast, large-cap funds recorded net outflows of Rs1,322 crore, the first outflow in 31 months, while flows into large & mid-cap funds moderated, indicating continued shift toward higher-growth market segments as large caps has underperformed mid and small caps in recent years.

Among hybrid strategies, arbitrage funds continued to attract strong inflows, while most other hybrid categories witnessed some moderation in investor allocations. Within passive funds, Gold ETFs saw softer inflows as gold prices remained range-bound, whereas Other ETFs recorded strong inflows of Rs9,512 crore.

Juzer Gabajiwala, Director, Ventura


Equity funds have seen net inflows dropping 15% from previous month. Largecap has seen a net redemption after a very long time clearly indicating that investors are running out of patience in large cap funds which have seen muted performance and no alpha. Preference is clearly shifting towards the mid and small cap space. Small cap has crossed 7500 cr mark and has seen the highest collection in last 1 year and even midcap is catching up. More than 50% of the net funds are mobilised in mid and small cap space.

Debt funds major collections are focused mainly on liquid and short term end clearly indicating risk averness by investors. Hybrid is also seeing a lag as mainly collections are towards arbitrage funds.

 

 

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