SIPs hit record high, Gold ETFs get over 7x love in June

Summary: Flexi-cap funds are surging, gold ETFs are shining and arbitrage funds are quietly collecting massive inflows. But while some categories are booming, others like ELSS are losing steam. Which trends matter for your portfolio? And what’s Value Research’s take on where to invest now? Read the full breakdown.

Systematic investment plans (SIPs) touched a fresh record in June 2025, with inflows rising to Rs 27,269 crore, up from Rs 26,688 crore in May, according to data released by the Association of Mutual Funds in India (AMFI). This milestone reflects the growing participation of Indian retail investors in disciplined, long-term investing.

At the same time, trends in fund flows suggest changing investor preferences across equity and debt categories, with flexi-cap funds and Gold ETFs emerging as a clear favourite.

Equity funds

Among equity categories, flexi-cap funds stood out with net inflows of Rs 5,700 crore, continuing a trend of strong performance and investor interest. The category is now fast approaching the top spot by assets under management (AUM), with total assets nearing Rs 4.8 lakh crore.

Flexi-cap funds, which allow fund managers to invest dynamically across large-, mid- and small-cap stocks, have increasingly become the go-to option for investors seeking broad-based equity exposure with active management flexibility.

Meanwhile, despite concerns over high valuations, small- and mid-cap funds continued to see net inflows. This trend suggests investors may be willing to accept higher volatility for potentially higher long-term returns. However, ‘may be’ are the key words to focus on.

Gold ETFs

Amid rising geopolitical uncertainty and volatility in global markets, gold exchange-traded funds (ETFs) witnessed strong investor demand. Inflows in June stood at approximately Rs 2,000 crore, up from just Rs 292 crore in May, reflecting gold’s dual role as both a hedge and a return-generating asset.

The yellow metal has also delivered solid returns over the past year, attracting tactical and long-term investors alike.

Suggested read: Gold up 105%: 4 best Gold ETFs riding the boom

Arbitrage funds

Another category that saw sustained traction was arbitrage funds, which collected Rs 15,500 crore in June. The arbitrage segment has already garnered Rs 43,000 crore in just the first quarter of FY26, nearly equalling the amount this category received in the entire FY25.

Given their relatively low volatility and favourable tax treatment (when held over three months), arbitrage funds are becoming a preferred option for conservative investors and those parking short-term funds.

ELSS

In contrast, equity-linked savings schemes (ELSS)—the only mutual fund category offering tax deductions under Section 80C—continued to register net outflows in June, as tax payers are continuing to move to the new tax regime.

Our take

The latest mutual fund data reveals a maturing investor base—one that is increasingly embracing SIPs and diversified strategies. However, the trend also highlights the need for thoughtful fund selection and disciplined asset allocation.

While flexi-cap funds offer built-in diversification and are ideal for most retail investors, categories like small- and mid-cap funds require a long-term horizon and higher risk tolerance. On the other hand, arbitrage funds and gold ETFs serve as useful tools for stability and diversification.

Also read: Heard of Smart SIPs? They can time market for higher returns