Large-cap funds recorded a net outflow of ₹1,322 crore in July, marking their first monthly outflow since December 2023.
The category had recorded an inflow of ₹2,067.5 crore in June.
The large-cap category saw a month-on-month swing of ₹3,389.5 crore in net flows in July.
Small-cap funds recorded net inflows of ₹7,767.5 crore in July, compared with ₹5,602 crore in June, while mid-cap funds saw inflows of ₹6,192 crore against ₹6,090.2 crore in the previous month.
Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), said the ₹1,300-crore outflow from large-cap funds stood out, while small-cap inflows increased despite the decline in overall equity flows.
She said the increase in small-cap flows came as market conditions improved, while noting that equity inflows had moderated from the higher levels seen earlier in the year.
Santosh Joseph, Founder and Partner at Germinate Investor Services LLP, said the flow trends reflected investor preference for mid- and small-cap categories, while flexi-cap funds remained a key destination for fresh diversified equity allocations.
According to Joseph, large-cap funds have underperformed mid- and small-cap segments over the past few months, while the latter have outperformed the broader market. He said the flow patterns were therefore in line with the relative performance of these segments.
Sectoral and thematic funds recorded net inflows of ₹1,328.3 crore in July, compared with ₹1,469.3 crore in June.
Total assets under management (AUM) of the mutual fund industry rose to ₹85.59 lakh crore in July from ₹82.22 lakh crore in June.
ETF inflows stood at ₹9,512 crore in July, compared with ₹13,238 crore in June. Gold ETF funds recorded inflows of ₹1,559 crore, against ₹3,443 crore in the previous month.
Hybrid funds saw net inflows of ₹11,490 crore in July, compared with ₹12,892.8 crore in June, while New Fund Offer (NFO) inflows rose to ₹2,022 crore from ₹460 crore.
On the debt side, liquid funds recorded a net inflow of ₹1.19 lakh crore in July, compared with an outflow of ₹42,293.3 crore in June.
Corporate bond funds reported an outflow of ₹784.7 crore in July, compared with ₹7,557.3 crore in June. Credit risk funds recorded an inflow of ₹145 crore, against ₹247.6 crore in the previous month.
ELSS funds recorded an outflow of ₹959 crore in July, compared with ₹633.9 crore in June, while dividend yield funds saw an outflow of ₹169.2 crore against ₹49.4 crore.
