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Below the Quote on AMFI July 2026 Data Reaction comment from Kartik Jain, MD & CEO, Shriram AMC

“July’s mutual fund data points to a meaningful shift in the composition of flows rather than simply a rise in headline numbers. The industry’s AUM rose to Rs 85.76 lakh crore, up 4.3% month-on-month and 13.8% year-on-year, reflecting the continued expansion of the mutual fund ecosystem. More importantly, net inflows turned sharply positive at Rs 2.36 lakh crore in July, compared with an outflow of nearly Rs 53,000 crore in June.

The biggest change came from debt-oriented funds, which recorded Rs 1.88 lakh crore of net inflows in July, reversing the Rs 1.09 lakh crore outflow seen in June. The sharp reversal needs to be viewed in the context of the seasonal pattern in debt-fund flows, which typically see sizeable redemptions around the June quarter-end and tax-payment period before seeing flows return in the subsequent months. The July numbers therefore reflect a normalisation of flows into debt-oriented categories, particularly liquid and short-duration funds, rather than a fundamental shift in investor preference.

At the same time, the data suggests that investor enthusiasm for equities has become more selective. Equity-oriented schemes continued to attract money, but net inflows moderated to Rs 24,697 crore from Rs 28,973 crore in June and Rs 42,702 crore in July last year. Hybrid fund flows also softened.

What remains encouraging is the structural growth in participation. Mutual fund folios increased to 28.09 crore, up 14.3% from a year ago, even as July’s NFO mobilisation was significantly lower than last year. This indicates that the industry’s growth is increasingly being supported by the existing investor base and sustained asset accumulation, rather than being dependent solely on new product launches. The July numbers therefore point to a more diversified and mature flow environment, with debt playing a larger role in the month’s overall momentum.”

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