Month: July 2025

June saw increased volatility in the debt market post-policy, crude oil swings driven by geopolitical tensions, banking system liquidity at a three-year high, and the rupee remaining resilient amid a softening dollar backdrop.

Money Market and Low Duration Funds led the sub-1-year segment, posting strong 3-month annualised returns of 8.58% and 8.88% on elevated short-term rates and active positioning.

Short to Medium Duration funds and Credit Risk funds posted strong 3–12 month returns, reflecting favourable accrual and duration positioning.

Domestic bond yields rose sharply in June, with the 10-year benchmark climbing 9 bps, reversing the softening trend observed in May.

Liquidity conditions remained comfortably surplus in June, with rising systemic liquidity prompting calibrated RBI interventions to manage short-term rates and absorb excess funds.

The Indian rupee ended June marginally lower, underperforming Asian peers amid muted inflows and structural external imbalances, though it rebounded from late-month geopolitical-driven lows.

For a comprehensive understanding and more insights, please go through our detailed report.

Sector Shuffle: FPIs Load Up on Financials & Oil, Trim Power & FMCG

Sectors in Demand: FPIs Chase Financials, Oil & Auto in June

• Financial Services led FPI inflows in June with a hefty ₹8,946 Cr, closely followed by Oil & Gas at ₹6,137 Cr, signaling strong confidence in India’s core sectors. A sharp turnaround was seen in Automobiles and Telecommunication, where early exits flipped into aggressive second-half buying, resulting in net inflows of ₹4,724 Cr and ₹2,733 Cr respectively.
• Chemicals also drew steady interest with ₹2,392 Cr, while Consumer Services witnessed renewed traction, ending with ₹1,348 Cr. FPIs added ₹910 Cr in Realty and showed a mild positive stance on IT, with net inflows of ₹1,166 Cr, reversing early selling pressure.

FPIs Exit Power, FMCG & Durables in June

• Power led the FPI outflows in June with a sharp withdrawal of ₹6,311 Cr, followed by FMCG where net selling amounted to ₹3,985 Cr, reflecting profit booking in defensives. Consumer Durables saw an outflow of ₹2,493 Cr, while Capital Goods faced net selling of ₹1,831 Cr as FPIs rotated away from cyclical exposures.
• Diversified sectors witnessed net withdrawals of ₹1,162 Cr, while Healthcare and Metals & Mining saw outflows of ₹1,092 Cr and ₹1,016 Cr respectively. Construction too saw mild selling pressure with FPIs pulling out ₹748 Cr, suggesting a broader recalibration of sectoral positions.

For a comprehensive understanding and more insights, please go through our detailed report.

Mutual Fund Industry Average AUM Scales Fresh Peak at ₹72.14 Lakh Cr in Q1FY26

Record High AUM on Equity Market Rally: The average AUM of the mutual fund industry surged by 7% quarter-on-quarter to an all-time high of ₹72.14 Lakh Cr during the April–June 2025 quarter. This growth was largely driven by strong equity market gains, especially in the midcap and smallcap segments, which rallied over 10%. For the first half of CY2025, the MF industry recorded a 5.13% increase in average AUM, supported by record SIP inflows and sustained bullish momentum in equities.

SBI Mutual Fund Hits Record AUM of ₹11.40 Lakh Cr in Q1FY26 : SBI Mutual Fund achieved a historic milestone by reaching an average AUM of ₹11.40 Lakh Cr during the April–June 2025 quarter. This marks the 22nd consecutive quarter that SBI Mutual Fund has retained its position as the largest fund house in India, underscoring consistent investor confidence and sustained market leadership.

Equity Rally Lifts AUM of Top Fund Houses: Driven by gains in the equity markets, leading equity-oriented fund houses witnessed strong AUM growth in the April–June 2025 quarter. SBI Mutual Fund recorded the highest absolute increase in average AUM, followed closely by ICICI Prudential, Nippon India and HDFC Mutual Fund.

Top Fund Houses Maintain Stability; Mirae Rejoins Elite Club: The mutual fund industry continues to reflect strong structural stability, with the top 3 and top 8 fund houses retaining their positions for an impressive 16 consecutive quarters. In a key development this quarter, Mirae Asset Mutual Fund made a comeback into the top 10 rankings, overtaking Tata and DSP Mutual Funds. Conversely, Tata Mutual Fund slipped out of the top ten in terms of average AUM, marking a notable reshuffle in the industry leaderboard.

Rising Stars in Mutual Funds: Mirae, Invesco, PPFAS and Trust Mutual Fund have climbed the ranks, marking strong progress over previous quarters.

Top Gainers by Percentage: Emerging AMCs Post Stellar AUM Growth – In the April–June 2025 quarter, several emerging and mid-sized AMCs—including Angel One, Unifi, Old Bridge, Zerodha, Trust, Groww, WhiteOak Capital, Helios, Bajaj Finserv, PPFAS and Motilal Oswal Mutual Fund—delivered stand out percentage growth in average AUM. This surge reflects their accelerating momentum and increasing investor traction, building on strong performance and expanding distribution in recent quarters.

19 AMCs Now Manage Over ₹1 Lakh Cr Each in Average AUM – As of the April–June 2025 quarter, 19 of the 46 active mutual fund houses have reported average AUM above ₹1 lakh crore. This milestone highlights the increasing scale and deepening consolidation within the Indian mutual fund industry.

For a comprehensive understanding and more insights, please go through our detailed report.