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In Jul’25, equity mutual funds (ex-arbitrage) saw inflows of INR 565bn (USD 6.5bn), 80% higher MoM. This follows a 30% MoM rise in inflows in Jun’25. SIP inflows in Jul’25 increased over Jun’25 to INR 285bn (USD 3.3bn), taking total SIP AUM to INR 15.2trln (USD 173bn), -0.7% MoM. Outstanding SIP accounts in the country increased by 2.6mn MoM, while number of new SIPs registered (gross) increased by 0.7mn from 6.2mn in Jun’25 to 6.9mn in Jul’25. Further, closure of SIP accounts stood at 4.3mn, taking the ratio of discontinued SIPs as a % of new SIPs to 63%. Vis-à-vis the BSE 200, the top-5 sectors where domestic mutual funds are overweight include: (1) pharmaceuticals & healthcare, (2) capital goods, (3) e-commerce, (4) consumer durables, and (5) agrochemicals & petrochemicals. Visà-vis the BSE 200, the top-5 sectors wherein domestic mutual funds are underweight include: (1) private banks, (2) oil & gas, (3) IT services, (4) consumer and (5) metals & mining.

* MF flows increase 80% MoM following a 30% rise in Jun’25: In Jul’25, equity mutual funds (ex-arbitrage) saw inflows of INR 565bn (USD 6.5bn), 80% higher MoM. This follows a 30% MoM rise in inflows in Jun’25. Arbitrage funds saw inflows of INR 73bn vs. inflows of INR 156bn in Jun’25. Core equity funds saw an inflow of INR 427bn, up 81% MoM. Thematic flows have increased MoM and stood at INR 94bn vs. INR 5bn in Jun’25. Equity NFOs saw a large rise in Jul’25 to INR 108.8bn vs. INR 9.3bn in Jun’25.

* SIP inflows and SIP accounts see an increase: SIP inflows in Jul’25 increased over Jun’25 to INR 285bn (USD 3.3bn), taking total SIP AUM to INR 15.2trln (USD 173bn), 0.7% lower MoM (hampered by ~3% negative market movement). Outstanding SIP accounts in the country currently stand at 94.5mn, 2.6mn higher MoM. The number of new SIPs registered (gross) increased by 0.7mn from 6.2mn in Jun’25 to 6.9mn in Jul’25. Further, closure of SIP accounts stood at 4.3mn, taking the ratio of discontinued SIPs as a % of new SIPs to 63%. Number of total contributing SIP accounts in Jul’25 increased to 91.1mn vs. 86.5mn sequentially.

* How MF holdings stack up vs. the BSE 200: Vis-à-vis the BSE 200, the top-5 sectors wherein domestic mutual funds remain overweight include: (1) pharmaceuticals & healthcare, (2) capital goods, (3) e-commerce, (4) consumer durables, and (5) agrochemicals & petrochemicals. This list remains unchanged vs. Jun’25. Besides this, sectors such as building materials, media, sugar and diversified have seen mutual funds taking exposure, although they do not have any weight in the BSE200. Vis-à-vis the BSE 200, the top-5 sectors wherein domestic mutual funds are underweight include: (1) private banks, (2) oil & gas, (3) IT services, (4) consumer and (5) metals & mining. This list remains unchanged vs. Jun’25.

* Indian MF cash levels: Indian MFs cash levels stood at INR 2,070bn, which is 4.9% of total equity AUM. In June, these numbers stood marginally lower at INR 2,040bn, constituting 4.8% of AUM.

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