Portfolios

Mid Cap Funds Join the ₹5 Lakh Crore AUM Club: Mid Cap Funds crossed the ₹5 lakh crore AUM milestone for the first time, with net assets reaching ₹5.06 lakh crore in June. Flexi Cap Funds remained the largest equity mutual fund category for the eighth consecutive month, with net AUM of ₹5.81 lakh crore, followed by Sectoral and Thematic Funds at ₹5.47 lakh crore. With Mid Cap Funds joining the group, three equity fund categories now manage assets exceeding ₹5 lakh crore each, underscoring sustained investor interest in diversified, sector-focused and mid-cap strategies.

Equity Mutual Fund AUM Reaches a New Record High: Equity mutual funds’ net AUM rose 3.3% MoM to a record ₹37.34 lakh crore in June, compared with ₹36.14 lakh crore in May, supported by gains across the broader equity market. Despite the mutual fund industry recording net outflows during the month, its overall net AUM increased 0.8% MoM to ₹82.22 lakh crore, aided by market appreciation. Most mutual fund categories witnessed an increase in assets, while debt funds remained the key exception, registering a decline during June.

MFs Add Fresh Exposure Across Infrastructure, New-Age, Industrials and IPO Names: Equity mutual funds initiated fresh positions across a diversified set of companies in June, led by JSW Infrastructure, which was added by 41 schemes, followed by InterGlobe Aviation, Acme Solar Holdings, Meesho and Billionbrains Garage Ventures. Strong additions were also recorded in Craftsman Automation, Oracle Financial Services Software, Bharti Hexacom, Coforge, JSW Steel, Dixon Technologies, Ashok Leyland and Tata Motors, indicating broad-based interest across infrastructure, aviation, renewable energy, digital platforms, industrials, telecom, IT, electronics manufacturing and automobiles. Among the larger additions, mutual funds collectively acquired 7.20% of Acme Solar Holdings, 5.12% of Craftsman Automation, 4.95% of JSW Infrastructure and 4.71% of Pine Labs. Turtlemint Fintech Solutions, an IPO stock, was added by 12 schemes, which collectively acquired 3.26% of the company, highlighting selective participation in new-age fintech and IPO-led opportunities.

MFs Exit Energy, Metals, IT and Large-Cap Names Amid Portfolio Rotation: On the exit side, several schemes exited NTPC, Tata Steel, Hindalco Industries, Oil India, ONGC and Reliance Industries, indicating portfolio reshuffling across energy and metals. Other notable exits included UltraTech Cement, PB Fintech, NALCO, Infosys, TCS, ICICI Prudential AMC, Jindal Steel and Bharat Electronics, reflecting selective reduction in exposure across cement, fintech, exchanges, IT, metals and defence.

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

Equity Buying Moderates in June; Cash Holdings Fall to Calendar-Year Low: Mutual funds remained strong domestic buyers, investing ₹50,643 crore in equities during June 2026, though purchases moderated from ₹60,597 crore in May. Overall equity-oriented mutual fund cash holdings declined to ₹1.84 lakh crore in June from ₹1.89 lakh crore in May, marking the lowest level of the calendar year and indicating continued cash deployment as net equity purchases remained higher than net inflows into equity-oriented schemes.

AMC Cash Levels Fall to Calendar-Year Low: The average cash holding ratio across the top 20 AMCs declined to 4.53% in June from 4.79% in May, marking the lowest level of the calendar year. The continued reduction indicates greater cash deployment and a stronger preference to remain invested, reflecting improving market confidence while maintaining adequate liquidity to manage volatility and capture emerging opportunities.

PPFAS Mutual Fund holds the highest cash-to-AUM ratio at 16.10%, with ₹24,107 Cr in cash, reflecting a distinctly defensive stance and strong deployment flexibility. Quant MF follows closely with 15.67% cash holdings (₹14,007 Cr), while DSP MF (6.44%) and Axis MF (6.38%) also maintain elevated liquidity buffers.

Parag Parikh Flexi Cap Fund Leads in Absolute Cash Holdings : Parag Parikh Flexi Cap Fund holds the largest cash reserve at ₹23,630 crore (16.48% of AUM), followed by HDFC Mid Cap Fund at ₹7,990 crore (7.92%) and HDFC Flexi Cap Fund at ₹6,370 crore (5.98%).

Contra & Flexi Cap Funds Lead Cash Holdings: Contra Funds remain the most cash-heavy category with 9.59% of AUM or ₹7,002 Cr in cash, reflecting a cautious yet opportunity-driven stance. Flexi Cap Funds hold the largest absolute cash pile at ₹41,552 Cr, equivalent to 7.14% of AUM, providing significant flexibility for tactical deployment.

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

The Mutual Fund industry’s Average AUM hit an all-time high of ₹84.18 lakh cr in June, up from ₹83.47 lakh cr in May, despite net outflows of ₹52,949 cr, primarily driven by heavy redemptions from debt-oriented schemes.

Equity-oriented mutual fund inflows rebounded 26.5% MoM to ₹28,973 cr in June 2026, from ₹22,908 cr in May, signalling a recovery in investor appetite. Mid-cap funds led inflows at ₹6,090 cr, followed by Small-cap funds at ₹5,602 cr and Flexi-cap funds at ₹5,231 cr, while Large-cap inflows also strengthened to ₹2,067 cr.

Debt mutual fund outflows crossed ₹1 lakh cr in June, widening to ₹1.09 lakh cr from ₹96,949 cr in May and marking the second consecutive month of heavy redemptions. 

Liquid funds led the withdrawals at ₹42,293 cr, followed by Low Duration, Ultra Short Duration, Money Market and Overnight funds. The withdrawals likely reflected quarter-end institutional liquidity requirements and tax-related treasury operations. Market participants generally view these as seasonal flows rather than a structural deterioration in debt-fund sentiment.

Mutual fund SIP inflows rose to a three-month high of ₹31,781 cr in June, just below the all-time high of ₹32,087 cr recorded in March. Contributions grew 2.7% MoM, reflecting resilient retail participation despite market volatility.

Gold ETFs staged a sharp comeback in June, attracting ₹3,443 cr in net inflows after witnessing ₹725 cr of outflows in May.

Other ETFs led with ₹13,238 cr, driven by Domestic Equity ETFs at ₹8,576 cr and Silver ETFs at ₹4,286 cr. Meanwhile, Index Funds recorded marginal outflows of ₹59 cr, as inflows into Domestic Equity Index Funds were offset by redemptions from debt-oriented index funds.

For more details read through our comprehensive report.

Mata Securities India Pvt Ltd | SEBI Registered Research Analyst | Reg. No. INH000022668 | SEBI Registered MF Distributor | ARN-0158

Market Cap Cutoffs Remain Elevated in AMFI’s July 2026 Categorisation: AMFI’s latest stock categorisation, based on average market capitalisation during Jan–Jun 2026, indicates that market-cap thresholds remain elevated. The Large Cap cutoff, based on average market capitalisation over the last six months, has edged up to approximately ₹1,06,300 crore from ₹1,05,000 crore in January 2026. In contrast, the Mid Cap cutoff has moderated slightly to around ₹33,500 crore from ₹34,700 crore, reflecting a relatively stable Large Cap threshold alongside some easing at the lower end of the Mid Cap universe.

AMFI’s Latest: 9 Stocks Enter the Large Cap Basket: In AMFI’s latest stock categorisation, eight names have been upgraded from Mid Cap to Large Cap—BSE, Vodafone Idea, Hitachi Energy India, Jindal Steel, Indian Bank, Indus Towers, Billionbrains Garage Ventures (Groww) and BHEL—as their six-month average market capitalisation moved above the Large Cap cutoff of around ₹1.06 lakh crore. Alongside these upgrades, Vedanta Aluminium Metal Ltd. (VAML) has been newly included in the Large Cap bucket based on market-cap eligibility.

For more details read through our comprehensive report

Mata Securities India Pvt Ltd | SEBI Registered Research Analyst | Reg. No. INH000022668 | SEBI Registered MF Distributor | ARN-0158

June 2026: FPIs Record Highest-Ever Debt Buying but Remain Equity Sellers; DIIs & MFs Deliver Record H1 Support

Record FPI Debt Buying in June as Tax Breaks and RBI Reforms Boost Foreign Appetite: On the debt side, FPIs recorded record inflows of ₹55,518 Cr in June 2026, marking the second consecutive month of positive debt flows. Importantly, inflows were positive across all three routes, with Debt-General Limit attracting ₹30,620 Cr, Debt-VRR ₹3,246 Cr and Debt-FAR ₹21,652 Cr, reflecting broad-based foreign appetite for Indian debt instruments.

FPIs Turn Net Buyers in the Second Half, Raising Hopes of Continued Buying in July: FPIs remained net sellers in Indian equities in June 2026, marking the fourth consecutive month of net outflows, with total equity selling of ₹49,340 Cr. The selling was largely driven by heavy secondary market outflows of ₹53,957.9 Cr, partly offset by primary market/IPO inflows of ₹4,618 Cr. However, the monthly trend showed a notable improvement, with FPIs selling ₹63,450 Cr in the first half before turning net buyers of ₹14,110 Cr in the second half. This sharp reversal towards month-end indicates an improvement in foreign investor sentiment and raises hopes that the buying momentum could continue into July.

H1 CY2026 Records Highest-Ever DII Buying: During H1 CY2026, DIIs infused a record ₹4,60,738 Cr into Indian equities, compared with ₹3.58 Lakh Cr in H1 CY2025, marking the highest-ever DII buying in the first half of a calendar year. Their sustained participation played a crucial role in absorbing record FPI selling, supporting market liquidity and cushioning volatility, reinforcing DIIs as the market’s key domestic anchor.

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

Mutual Fund Industry Average AUM Climbs to a New Record of ₹83.14 Lakh Cr.

Mata Securities India Pvt Ltd | SEBI Registered Research Analyst | Reg. No. INH000022668 | SEBI Registered MF Distributor | ARN-0158

Fresh Peak for Average AUM on Broad-Based Industry Growth: The mutual fund industry’s Average AUM rose to a fresh record of ₹83.14 lakh cr. in the April-June 2026 quarter, registering a healthy 15.26% YoY growth and 1.97% QoQ increase. Industry AAUM expanded by ₹1.61 lakh cr. over the previous quarter, reflecting continued investor participation despite market volatility and global uncertainties. The steady rise highlights the industry’s resilience, supported by strong retail flows, SIP momentum, wider product adoption, and the growing relevance of mutual funds in India’s long-term savings and investment landscape.

SBI MF Retains Top Spot: SBI Mutual Fund continued to hold its leadership position with an AAUM of ₹12.57 lakh cr. in the April-June 2026 quarter, supported by 10.28% YoY growth and a market share of 15.12%. This also marks the 26th consecutive quarter of SBI MF retaining its position as India’s largest fund house, highlighting strong and sustained investor confidence in the franchise. Notably, SBI Mutual Fund and ICICI Prudential Mutual Fund remain the only two AMCs in India with an Average AUM exceeding ₹11 lakh cr.

AAUM Growth Leaders Drive Industry Expansion: The mutual fund industry’s leading players delivered a healthy performance in the April-June 2026 quarter, with Nippon India Mutual Fund posting the highest absolute increase in Average AUM at ₹26,554 cr. The quarter also saw strong traction across other prominent fund houses, as ICICI Prudential, Motilal Oswal, Kotak Mahindra, Axis, and SBI Mutual Fund emerged as key contributors to the industry’s overall AAUM expansion. Their performance highlights the continued strength of select franchises in attracting investor flows despite a volatile market backdrop.

New and Rising AMCs Continue to Gain Ground: Newer and fast-scaling AMCs continued to build presence during the April-June 2026 quarter. Abakkus Mutual Fund showed strong sequential growth, with AAUM rising to ₹5,580 cr. from ₹3,129 cr. in the previous quarter. Jio BlackRock Mutual Fund also scaled further to ₹17,979 cr., while Zerodha, Helios, WhiteOak Capital, Groww, and Trust Mutual Fund continued to gain traction. This highlights improving investor acceptance of newer platforms and challenger AMCs.

Top Percentage Gainers: Emerging AMCs Deliver Sharp AAUM Expansion: Several emerging and mid-sized AMCs delivered strong percentage growth in the April-June 2026 quarter. Abakkus Mutual Fund led the pack with the highest QoQ AAUM growth, followed by Angel One, Old Bridge, Groww, Capitalmind, Trust, Choice, Helios, WhiteOak Capital, and Zerodha Mutual Fund. The trend highlights that AAUM growth was not limited to large incumbents, with newer and challenger AMCs steadily expanding their footprint and gaining investor acceptance across the industry.

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

June Fortnight Review: FPIs Risk-Off; DIIs & MFs Absorb Selling Pressure

FPI Selling: Financial Services, Oil & Gas and Auto Lead Outflows  – During 1st–15th June 2026, FPI selling remained broad-based and concentrated across key large-cap sectors. Financial Services saw the highest outflow of ₹11,263 Cr, making it the biggest drag during the fortnight. Selling was also heavy in Oil & Gas at ₹10,488 Cr, followed by Automobile at ₹9,044 Cr, Information Technology at ₹6,733 Cr, FMCG at ₹5,063 Cr, Metals & Mining at ₹4,722 Cr, Healthcare at ₹4,501 Cr and Capital Goods at ₹2,586 Cr. This indicates that FPIs continued to reduce exposure across financials, energy, autos, IT and consumption-oriented sectors.

FPI Buying: Inflows Remain Very Selective – On the buy side, FPI activity remained highly selective, with modest buying led by Telecommunication, which attracted inflows of ₹373 Cr. Services also saw inflows of ₹302 Cr, while Utilities witnessed marginal buying of ₹7 Cr. Overall, FPI flows during the first half of June remained clearly risk-off, with broad-based selling outweighing limited sector-wise buying.

FPIs Stay Risk-Off in First Half of June: Historic FPI equity selling deepened in June, with FPIs recording outflows of ₹63,450 Cr during 1st–15th June 2026, marking the fourth consecutive month of equity outflows. The selling was mainly driven by the secondary market, where FPIs sold ₹64,268 Cr, while primary market/IPOs saw modest inflows of ₹819 Cr, indicating continued caution toward listed equities.

DII Buying Remains Robust: Domestic Institutional Investors continued their strong buying momentum in the first half of June 2026, with net equity purchases of ₹61,137 Cr during 1st–15th June. For CY2026 till 15th June, DIIs have invested a strong ₹4,45,474 Cr in Indian equities, reinforcing their role as the key stabilising force amid continued FPI selling pressure.

MF Equity Buying Remains Strong: Mutual Funds remained major buyers within the domestic institutional segment, investing ₹42,725 Cr in equities during 1st–15th June 2026. On a CY2026-to-date basis, MFs have invested ₹2,88,929 Cr in equities, highlighting sustained domestic investor participation through mutual fund channels. 

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

Equity MF AUM Inches Higher Even as Overall Industry AUM Declines: Equity mutual funds’ Net AUM recovered in May, rising 1.10% MoM to ₹36.14 lakh crore from ₹35.74 lakh crore in April, supported by gains in the broader equity market. In contrast, the overall mutual fund industry Net AUM declined 0.42% MoM to ₹81.58 lakh crore, weighed down by softer equity inflows and sharp outflows from debt-oriented schemes.

MFs Add Fresh Exposure Across New-Age, IPO, Power, Industrials and Consumer Names: Equity mutual funds added fresh positions in a diversified set of stocks led by Billionbrains Garage Ventures, Lenskart Solutions, OnEMI Technology Solutions and JSW Energy, reflecting selective interest across new-age digital platforms, consumer-tech, IPO-led opportunities and power. Incremental additions were also visible in ABB India, Adani Energy Solutions, Dixon Technologies, Bharti Airtel, Crompton Greaves, BSE, InterGlobe Aviation, BEL, CG Power, Sai Life Sciences and HAL, indicating broad-based accumulation across industrials, power transmission, electronics, telecom, exchanges, aviation, defence and pharma.

MFs Exit Lupin, Kotak Bank, SBI, PSU Banks and Auto Names Amid Portfolio Rotation: On the exit side, Several schemes exited exposure to Lupin, State Bank of India, Bank of Baroda and Canara Bank, indicating portfolio reshuffling across pharma and banking names. Other notable exits were seen in Godrej Consumer, TVS Motor, Tata Motors, Eternal, Jubilant FoodWorks, Hero MotoCorp, ITC, Indian Bank, Shriram Finance and Ashok Leyland, reflecting churn across consumption, auto, FMCG, QSR and financials.

Lenskart, Billionbrains, JSW Energy & PB Fintech Lead MF Buying; BFSI, Auto and Energy Names Also Attract Net Adds: In the Top 20 traded stocks, equity mutual funds recorded the strongest net additions in Lenskart Solutions, Billionbrains Garage Ventures, JSW Energy and PB Fintech, reflecting strong accumulation across new-age consumer platforms, digital businesses, power and fintech. Buying interest was also visible in Adani Energy Solutions, Eternal, TVS Motor, ICICI Bank, Samvardhana Motherson, Kotak Mahindra Bank and HDFC Bank, indicating steady allocation toward power transmission, consumption, automobiles, auto ancillaries and large private banks.

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

Equity Buying Accelerates in May: Mutual funds stepped up equity deployment in May 2026, with net equity purchases of ₹63,087 crore, providing strong domestic support despite continued FPI selling. Overall equity-oriented MF cash holdings declined to ₹1.88 lakh crore from ₹1.98 lakh crore in April, suggesting that fund managers used the mild market correction to deploy cash and add equities even as equity MF inflows hit a one-year low.

AMC Cash Levels Ease, but Caution Persists: The average cash holding ratio across the top 20 AMCs eased to 4.79% in May, down from 5.03% in April, as equity-oriented AUM continued to expand and fund managers deployed cash amid improving market conditions. With cash levels slipping below the 5% mark, the trend suggests a sustained risk-on stance and a preference to remain more fully invested, while still maintaining sufficient liquidity to navigate market volatility and capitalize on emerging opportunities.

PPFAS Mutual Fund continues to hold the highest cash-to-AUM ratio at 17.67%, with ₹26,104 Cr in cash, reflecting a distinctly defensive stance and ample flexibility for future deployment. Quant MF follows with a sizeable 13.89% cash holding (₹12,182 Cr), while DSP MF (6.90%) and Axis MF (6.79%) also maintain relatively elevated cash buffers, indicating a cautious yet opportunity-driven investment approach.

Flexi Cap Funds Lead in Absolute Cash Stash: Parag Parikh Flexi Cap Fund holds the largest cash buffer at ₹25,652 Cr, with cash accounting for 18.14% of AUM, reflecting a defensive yet opportunity-ready stance. HDFC Flexi Cap Fund follows with ₹7,458 Cr in cash (7.32% of AUM), indicating ample liquidity for tactical deployment as market opportunities evolve.

Contra & Flexi Cap Funds Continue to Lead Cash Holdings: Contra Funds remain the most cash-heavy category with an 11.29% cash-to-AUM ratio and ₹8,155 Cr in cash, reflecting a cautious yet opportunity-driven stance. Flexi Cap Funds follow with 8.16% cash holdings or ₹46,079 Cr, highlighting their ability to dynamically allocate across market segments as opportunities arise.

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

The mutual fund industry sustained its momentum in May 2026, with Average AUM rising to ₹83.46 lakh crore from ₹81.94 lakh crore in April, even as total net outflows of ₹64,021 crore were recorded during the month, largely driven by heavy debt redemptions.

Equity-oriented inflows fell to a one-year low of ₹22,908 crore in May. Flexi-cap, Small-cap and Mid-cap funds continued to lead, though all three saw meaningful deceleration from April’s elevated levels.

Hybrid inflows halved to ₹10,560 crore, largely on account of a sharp moderation in Arbitrage fund flows.

Passive fund inflows fell sharply in May, with Index Funds and ETFs pulling back significantly from April’s levels. Gold ETFs turned net negative for the first time in 13 months.

Debt mutual funds recorded a net outflow of ₹96,949 crore, sharply reversing April’s all-time high inflow — driven by seasonal advance tax outflows and a tightening in banking system liquidity that pushed short-term rates higher.

SIP contributions remained broadly stable at ₹30,954 crore, easing marginally from April’s ₹31,115 crore, continuing to reflect the resilience of retail investor participation.

Overall, May 2026 reflects a seasonal liquidity-driven correction in debt flows, while equity and SIP momentum — though moderating — remain structurally intact, keeping industry AUM on an upward trajectory.