Indian Mutual Funds: ₹2.35 Lakh Crore Inflow in July

India’s mutual fund industry experienced a significant net inflow of ₹2.35 lakh crore in July 2026, marking a substantial reversal from the previous month’s outflows. This surge follows data released by the Association of Mutual Funds in India (AMFI).

• Overall mutual fund schemes net inflow in July 2026: ₹2.35 lakh crore
• Previous month’s net outflow: ₹52,948.78 crore

Total Assets Under Management (AUM) for the industry also saw an increase, reaching ₹85.76 lakh crore in July, up from ₹82.22 lakh crore recorded in June 2026.

Equity-oriented schemes attracted notable inflows across specific categories during July. Small-cap funds led these contributions, demonstrating robust investor interest.

• Small-cap funds net inflow (July 2026): ₹7,767.50 crore
• Mid-cap funds net inflow (July 2026): ₹6,192.31 crore
• Flexi-cap funds net inflow (July 2026): ₹4,709.08 crore

In June, equity schemes collectively registered net inflows of ₹28,973 crore, an increase from ₹22,908 crore in May, indicating sustained participation from investors.

Mid-Cap Funds Demonstrate Strong Long-Term Returns

Four specific mid-cap mutual fund schemes have delivered impressive Compound Annual Growth Rates (CAGR) exceeding 20% over the past five years, as of July 31, 2026.

• Motilal Oswal Midcap Fund – Direct Plan: AUM ₹37,474 crore; 5-year CAGR 23.81%.
• HDFC Mid Cap Fund – Direct Plan: AUM ₹1,05,143 crore; 5-year CAGR 21.14%.
• Invesco India Mid Cap Fund – Direct Plan: AUM ₹14,744 crore; 5-year CAGR 21.51%.
• Edelweiss Mid Cap Fund – Direct Plan: AUM ₹17,748 crore; 5-year CAGR 20.19%.

The July 2026 data presents a nuanced picture for India’s mutual fund sector, with overall inflows rebounding sharply and specific equity segments, particularly mid and small-cap funds, attracting substantial investor capital and delivering strong long-term performance.