Equity Mutual Fund AUM in May 2025: Price Accretion Takes the Lead

Overview

In May 2025, the Indian equity mutual fund market witnessed a strong surge in Assets Under Management (AUM), but this growth was led more by market performance than by investor inflows.

Out of ₹1.49 lakh crore total AUM growth, ₹1.29 lakh crore (87%) came purely from price appreciation, not fresh investments. This indicates that while investors stayed cautious, the bull market did the heavy lifting.

Let’s break down what this shift means for your investments and where smart money is going.

What is Price Accretion?

Price accretion refers to the rise in the value of the fund’s holdings due to market gains. It is different from net inflows, which are actual new investments made by people like you and me.

In a rising market:

NAV of mutual funds goes up → AUM increases → Even without new money, the fund looks bigger.

May 2025 Equity Fund AUM: Category-Wise Breakdown

Color Legend: Green Zone: Price Dominated (>100%) Yellow Zone: Mixed Trend (85%–100%) Blue Zone: Flow Dominated (<85%)

Category	Net Inflow (₹ Cr)	AUM Closing (₹ Cr)	Total AUM Accretion (₹ Cr)	Price Accretion (₹ Cr)	% via Price Accretion
ELSS	-678.11	2,46,293.05	7,242.43	7,920.54	109.36%
Dividend Yield	-20.82	32,177.14	844.23	865.05	102.47%
Value/Contra	-92.28	1,96,339.39	5,482.79	5,575.07	101.68%
Sectoral/Thematic	2,052.48	4,92,403.81	22,064.76	20,012.28	90.70%
Small Cap	3,214.21	3,36,005.21	28,837.10	25,622.89	88.85%
Mid Cap	2,808.68	4,08,092.68	25,008.97	22,200.29	88.77%
Large Cap	1,250.47	3,83,666.59	9,146.88	7,896.40	86.33%
Focused	947.18	1,55,870.44	5,647.39	4,700.21	83.23%
Large & Mid Cap	2,690.69	2,87,392.50	14,134.08	11,443.39	80.96%
Flexi Cap	3,841.32	4,71,974.48	17,306.57	13,465.25	77.80%
Multi Cap	2,999.29	1,95,159.76	12,026.95	9,027.67	75.06%
Active Equity Funds	19,013.12	32,05,375.05	1,47,742.16	1,28,729.04	87.13%

> Source: AMFI India

Interpreting the 3 Fund Categories by Price vs Flow Dominance

Category 1: Price-Dominated (Green Zone)

Funds like ELSS, Dividend Yield, and Value Funds

These funds saw negative or weak inflows but still grew in AUM.
Growth was purely due to market rally.
ELSS is losing traction due to the new tax regime, which gives no benefit to 80C investments.

Takeaway: Don’t be misled by high AUM growth here - it wasn’t driven by popularity or conviction.

Category 2: Midway - Market Momentum Plus Flows (Yellow Zone)

Funds like Sectoral, Small Cap, Mid Cap

These funds attracted inflows but price action did the heavy lifting.
Investors seem cautious due to recent volatility in mid/small caps and thematic plays.

Takeaway: Alpha-hunting is slowing; investors are getting conservative.

Category 3: Flow-Dominated (Blue Zone)

Funds like Flexi Cap, Large & Mid Cap, Multi Cap

These received the most inflows relative to price growth.
Combination funds are regaining trust in volatile times.
Investors are betting on balanced exposure - mixing large cap safety with mid/small cap growth.

Takeaway: The smart money is shifting from aggressive bets to balanced diversification.

Latest Equity Fund Trends (May–June 2025)

Date	Update
Jun 13, 2025	AMFI reports ₹34,697 Cr total equity inflow; 3rd highest in FY25
Jun 10, 2025	Mid Cap and Small Cap funds hit record NAVs, volatility returns
May 31, 2025	ELSS redemptions continue amid tax regime confusion
May 15, 2025	Flexi Cap funds report 22% rise in SIP contribution YoY

What Should Investors Do?

Situation	Suggested Action
Already invested in small/mid cap funds	Review exposure; consider rebalancing
Looking for long-term, stable growth	Explore Flexi Cap or Multi Cap categories
Tax planning with ELSS	Reconsider only if you're under old regime
Want to avoid timing markets	Stick to disciplined SIPs in diversified funds

Quick Summary

AUM jumped ₹1.49 lakh crore in May, but 87% was due to price moves, not inflows.
ELSS and value funds grew on paper, but lost investor interest.
Flexi Cap and Large & Mid Cap funds gained real money from investors.
Market rally is leading the numbers, not necessarily investor conviction.

Still Unsure Where to Invest?

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Disclaimer: The content in this article is for educational purposes only and should not be considered financial advice. Please consult a qualified advisor before making investment decisions.

Published At: Jun 17, 2025 11:48 am

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