Equity
Mutual Funds: Double Digit Returns in 3 & 5 Years..!
By Mr. Yaseen Sahar, Financial Expert
According to analysis done
by ICRA Analytics, the net inflows
in equity funds have grown by 15% on a YoY basis from about Rs. 37,100 crore in
July 2024 to about Rs. 42,700 crore in July 2025. The net inflows in 2025 July
have actually increased by 81% in July compared to June.
Fund Categories with
highest inflows..!
Data shows that investors
prefer equity funds with investment across market caps & potential for
higher returns.
In the last one year, sectoral
and thematic funds have received the highest net inflows of about Rs.9,250
crores while flexi cap funds & small cap funds are next with net inflows of
Rs.7,650 crore and Rs.6,500 crore, respectively.
Ashwini Kumar, Senior VP & Head Market Data, ICRA Analytics
Ashwini Kumar, Senior VP & Head Market Data, ICRA Analytics, said, “Inflows into equity mutual funds has witnessed a sharp rise in the last few years as investors are increasingly adopting a long-term perspective, recognizing that short-term share market fluctuations are part of the journey toward wealth creation.
Historical data shows that markets tend to recover and
reward patient investors over time. Despite global uncertainties, domestic
investors remain optimistic about India’s economic trajectory. This confidence
has translated into sustained inflows into equity Mutual Funds, even during
periods of high volatility.”
The total equity AUM of the
industry has also grown by 335% in the last 5 years from Rs.7.65 lakh crore to
Rs.33.32 lakh crore.
Performance of equity
categories over a medium to long term
Equity funds have also
performed well over a medium to long term with an above 15% CAGR returns in
each fund category for 3-year and 5-year durations despite the market
correction and volatility in the last one year.
|
Scheme
Name |
3-Year
Returns (%) |
5-Year
Returns (%) |
|
Large Cap Fund |
15.34 |
18.65 |
|
Flexi Cap Fund |
17.13 |
20.91 |
|
Mid Cap Fund |
22.20 |
27.36 |
|
ELSS |
17.73 |
21.31 |
|
Sectoral/Thematic Funds |
20.01 |
23.31 |
|
Large & Mid Cap Fund |
19.28 |
23.35 |
|
Small Cap Fund |
22.56 |
31.70 |
|
Focused Fund |
16.86 |
20.05 |
|
Value/Contra Fund |
21.22 |
25.20 |
|
Multi Cap Fund |
20.40 |
24.88 |
|
Dividend Yield Fund |
19.83 |
23.71 |
Source: MFI360Explorer (CAGR returns as on
July 31, 2025)
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme
related documents carefully. The past performance of the mutual funds is not
necessarily indicative of future performance of the schemes.
Mr. Yaseen Sahar has been reached at rahas84@gmail.com and 98433 13512
Read articles written by Mr. Yaseen Sahar, Financial Expert in
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