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MF flows rebound in June, Retail investors standing tall / keeping faith

ICICIdirect Research 11 Jul 2025 DISCLAIMER

Inflows in the month of June rebound from May lows to Rs 23600 crore as compared Rs 19000 crore in May on the back of inflows into core category. Ex-NFOs, inflows was Rs 22700 crore Vs Rs 16300 crore in May. Flows rebounded despite no major fall in markets receding concerns of a structural decline in inflows (may be month of May was an aberration).

Both gross inflows higher (2100 crore higher) while redemptions were lower (4200 crore lower).

Inflows were higher in Flexicap (5600 vs 3800), Midcap Fund (3800 vs 2800), Smallcap (4000 vs 3200), Multicap Funds (2800 vs 2000), Value (1200 vs 0)

Thematic funds seems to have gone out of flavor. No inflows in thematic funds (-200 crore).

ETFs saw significantly lower inflows in last 2 months as market recover at Rs 800 crore in June Vs Rs 4000 crore in May Vs Rs 19000 in April.

SIP inflows continue to rise at Rs 27269 crore Vs Rs 26688 crore Vs 26632 crore

Rebound in flows from May lows of Rs 16000 crore to Rs 23600 crore indicates that we should maintain this monthly run-rate of around 23000/24000 at the lower-end. Flows are likely to be higher if market witness intermittent correction.

 

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