SIP inflows achieved a historic milestone in June 2026, reaching a record ₹32,087 crore despite the Sensex falling 9% during the month. According to The Economic Times, this represents a significant increase from the ₹31,781 crore recorded in June 2026, demonstrating the resilience of systematic investment plans even during challenging market conditions. The record performance occurred in the same month that witnessed the Sensex's steepest decline since 2020, highlighting the power of rupee-cost averaging during volatile periods. As per Swarup Mohanty, CEO of Mirae Asset Investment Managers, the headline strength in SIP inflow is driven largely by contributions from new mutual fund investors, with existing investors either pausing or reducing investments amid heightened market volatility.
New fund offer collections experienced a dramatic decline, reaching a five-year low of ₹1,759 crore in June 2026, representing a 73% year-on-year decline from ₹6,506 crore in the previous year. As reported by The Economic Times, on a sequential basis, NFO collections fell 83.5% from the prior quarter's ₹10,661 crore, marking the sixth consecutive period of year-on-year decline. The sharp slowdown followed weak equity market sentiments during the preceding quarter, with the BSE Sensex falling nearly 16% to 71,947 by March-end amid escalating geo-political tensions in West Asia. Despite market sentiment improving in June with the Sensex rising nearly 5% to 76,479 by June-end, the recovery did little to revive NFO fundraising. Rishi Kohli, chief investment officer at Jio BlackRock Asset Management, noted that "NFO activity is closely linked to market sentiment and performance" and that established fund houses and differentiated products may still attract investor interest during volatile periods.
Passive funds dominated new fund offer launches in the June 2026 quarter, with 26 out of 31 NFOs being index funds and ETFs that collectively mobilised ₹1,024 crore. According to The Economic Times, this trend reflects the growing preference for passive investment products among retail investors. The data from the Association of Mutual Funds in India (AMFI) indicates that the first quarter of a financial year has historically been a weak period for NFO mobilisation compared with the rest of the year. Market experts suggest that schemes launched by established AMCs and managed by fund managers with a proven track record, or NFOs offering product differentiation can continue to attract investor interest even during volatile market periods.
