Price Moves dominate Flows in Equity Fund AUM shift in June 2026

PRICE MOVES IN AUM SHIFT – THE MACRO PICTURE

In the month of June 2026, price moves played a more important part in AUM shifts than flows. While flows continued to be modest, the prices moves were a lot more positive with prospects of peace returning to the Middle East. At a macro level, the AUM of open-ended funds increased by 0.82% to ₹82.05 trillion. In rupee terms, the total AUM of open-ended funds increased by 0.67 trillion. This includes ₹1.17 trillion as price accretion, and ₹-0.50 trillion by way of net outflows from mutual funds in June 2026.

Data Source: AMFI (absolute numbers are ₹ in crore)

WHAT TRIGGERED MUTUAL FUND AUM SHIFT IN JUN-26

• In the case of debt funds, AUM fall of ₹-0.87 trillion was triggered by ₹-1.09 trillion of net outflows from debt funds; offset by ₹0.22 trillion of price accretion.

• Equity funds had high price dominance at 75.9%, largely because the equity indices rallied amid hopes of peace returning to the Middle East.

• In case of Hybrid funds, price dominance was modest at 55.9%, but that was more due tepid flows into categories like BAFs, Equity Savings, Conservative Hybrids etc.

• In the case of Passive funds, price dominance was negative due to the sharp correction in gold and silver prices, which offset the equity market appreciation.

• At a macro level, the overall price accretion was dominated by equity funds, hybrid funds, and debt funds; while gold led to price depletion in passive funds.

EQUITY AUM SHIFT: JUNE STORY WAS DOMINATED BY PRICE ACCRETION

For June 2026, Active Equity Funds saw positive flows of ₹28,973 crore, a full 26.5% higher than in May. However, the real story was about price moves, rather than flows.

• Active Equity funds saw net AUM accretion of ₹1,20,013 crore. This was triggered by price accretion of ₹91,039 crore, assisted by net inflows into equity funds of ₹28,973 crore. The sharp price accretion was due to an optimism driven rally in markets.

• Within equity funds, Dividend Yield Funds and ELSS Funds saw price dominance of over 100%. Ironically, in both cases, flows were in the negative but price moves were robust. Even sectoral funds saw high price dominance due to the tepid flows.

• Most of the popular equity fund categories like mid-cap funds, small cap funds, and flexi-cap funds have price dominance of less than 80%. That is more because the flows have been robust and that has tended to underplay the price impact.

• Once again, the flows have been the most robust in the month of June 2026 in 2 themes viz. alpha hunting and allocation mix diversification. Most equity fund investors are now focusing on these two themes rather than thematic bets.

• The bottom 5 fund categories in the above list accounted for 84.4% of the total flows but just 63.5% of the price accretion. As a result, these 5 categories (Small Caps, Mid-Caps, Multi-Caps, Flexi-Caps, and Large & Mid-Caps) accounted for 68.5% of the overall AUM shift in the month of June 2026.

The story is repeating. Large caps are giving way to passive plays, and sector plays are off the table. For now, it is all about alpha hunting and market cap diversification.