What are the Top Sectors Where Mutual Funds Invested the Most in June 2025?

In June, mutual funds in India made huge investments in specific sectors, showing where investors see strong potential and confidence. These investments highlight changing market trends and growing interest in both stable and growth-focused industries.

"Pharmaceuticals and healthcare sector attracted the most mutual fund investments in June," noted JM Financial report.

According to data released by the Association of Mutual Funds in India (AMFI) on July 9, mutual fund investments increased across several areas. equity mutual funds, net inflows rose to Rs 23,568 crore in June, a 24% increase from Rs 18,994.56 crore in May. This means more money was invested in stock-related mutual funds compared to the previous month.

Increase in SIP Investments

SIP inflows reached an all-time high of Rs 27,269 crore in June, up from Rs 26,688 crore in May. This shows that more people are consistently investing in mutual funds every month. This pushed the total SIP assets under management (AUM) to Rs 15.3 lakh crore ($178 billion), a 4.7% increase from the previous month.This growth was supported by a 3.1% rise in market performance, which also boosted portfolio values.

"The number of active SIP accounts across the country also increased by 13 lakh, bringing the total number of SIP accounts to 91.9 million. In June, 62 lakh new SIPs were registered, while 48 lakh SIPs were closed. This means that 78% of new SIPs were discontinued, showing that while interest in SIPs remains high, many investors are also pausing or stopping their investments," according JM Financial.

Top Sectors for Mutual Fund Investments

Compared to the BSE 200 index, mutual funds in India were more heavily invested in five main sectors, said JM Financial Report.

1. Pharmaceuticals & Healthcare - This sector remains the most preferred, likely due to its stability and importance in any economic situation. Top stocks in this sector include Biocon, Sai Life Sciences, Alkem Lab, Fortis Healthcare and Glenmark Pharma.

2. Capital Goods - This includes industries that manufacture equipment and machinery, important for infrastructure and industrial growth. Kaynes Tech, Premier Energies, Suzlon Energy, Bharat Electronics, and Oswal Pumps are the top stocks of this sector.

3. Consumer Durables - This was the third most preferred sector with Dixon Tech, Blue Star, Amber Enterprises, Johnson Controls and Symphony among the top stocks of the sector.

4. Agrochemicals & Petrochemicals - Companies in the agriculture and chemicals space continue to attract investment.

5. E-commerce - Online retail and related businesses saw increased interest, replacing the textile sector in the top five. Swiggy, One97 Comm, Eternal, FSN E-Comm, and Awfis Space were among the top stocks from this sector.

In addition to these, mutual funds also started investing more in sectors like building materials, media, sugar, and diversified industries. However, these sectors are not part of the BSE 200 index.

On the other hand, JM Financial noted that, mutual funds invested less in sectors like private banks, oil and gas, IT services, the consumer sector, and metals and mining (which replaced telecom on the underweight list). This suggests that fund managers are being cautious about these industries, possibly because of uncertain market conditions or lower expectations for returns in the near future.

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