Retail investor activity in equity funds dipped by almost fifteen percent in July, indicating a cautious approach towards market trends. Conversely, systematic investment plans enjoyed positive growth, affirming their importance in the investment landscape. Debt funds welcomed impressive inflows, bolstering overall industry assets. Additionally, liquid and overnight funds attracted major corporate treasury allocations at the quarter's start, with mid- and small-cap equity categories still favored despite market hesitations.

Indian households are increasingly shifting savings to bank deposits and cash amid declining equity flows and global uncertainty.

Among the 11 sub-categories, small-cap funds received the highest inflow at Rs 7,767 crore, marking the highest-ever inflow in the category.

Equity mutual fund inflows dropped 15% to ₹24,697 crore in July, reflecting a moderation in investment pace.