According to Vallum Capital‘s Monthly Macro Grid Chartbook report, total net asset-level inflows moderated to ₹48,826 crore in June 2026 from ₹56,886 crore in May, a decline of 14% month-on-month. Beneath the headline numbers, however, investor positioning shifted noticeably across asset classes.
Equity inflows strengthened to ₹48,914 crore, up ₹3,215 crore over May, even as returns remained modest at 1.8%. Fixed Income witnessed net outflows of ₹51,489 crore, while Money Market outflows deepened further to ₹57,277 crore, indicating institutional liquidity continued moving out of defensive assets. In contrast, Precious Metals attracted net inflows of ₹8,678 crore despite delivering a negative 6.3% return during the month, suggesting investors used the correction to accumulate gold rather than exit the asset class.
June highlighted a clear divergence in investor behaviour. Large-Cap funds attracted the highest inflows (₹9,656 crore) despite being the worst-performing category this year (-5.4% YTD), reflecting the strength of SIP-led passive flows. Meanwhile, Mid-Cap funds recorded the sharpest increase in inflows (+₹1,336 crore), while Small-Cap funds maintained healthy investor interest with ₹4,508 crore of inflows and the strongest YTD return (9.3%). The data suggests that automatic money continues to favour large caps, while discretionary capital is increasingly rotating towards mid- and small-cap opportunities. The money that is choosing where to go as opposed to auto-routing is going there.
Healthcare remains the standout sector in 2026, delivering nearly 15% YTD returns. In an uncertain macro environment, investors continue to favour businesses with relatively predictable cash flows, including hospitals, diagnostics and pharmaceuticals. The sector also witnessed a ₹294 crore increase in inflows during June.
Real Estate pulled off something remarkable in July gaining 14.4% in a single month, essentially erasing a year’s worth of losses in 30 days. The market had underestimated it; now it’s catching up.
Banking tells an interesting story too. Private banks saw a surge of ₹802 crore in fresh inflows last month, while broader banking indices saw outflows. Investors aren’t leaving banks they’re getting picky inside the sector.
Technology funds, despite being down 17.3% this year, are still attracting fresh money. Investors are buying the dip betting that today’s pain is tomorrow’s gain. Whether that bet pays off remains to be seen.
Consumption remains the weakest pocket of the market. Despite positive one-month returns across most consumption segments, the broader Consumption category continued to witness outflows in June. FMCG remains among the weakest-performing themes, down 12.4% year-to-date, reflecting continued caution toward the sector.
Global markets also reflected a meaningful shift in investor positioning during June. South Korea, one of the strongest-performing markets earlier this year, witnessed a sharp reversal as AI-related trades unwound. The Korea ETF (EWY) declined 19% during the month after gaining 77% year-to-date, while Korean semiconductor stocks fell 31.5%, indicating profit booking in one of the world’s most crowded investment themes.
At the same time, capital rotated towards sectors with stronger earnings visibility. Genomics (+21.1%), Biotech (+16.2%), Cybersecurity (+13.7%) and Insurance (+10.7%) emerged among the better-performing global themes. Even within semiconductors, China’s STAR Chip ETF (+24.4%) outperformed its Korean peers, highlighting an evolving regional and geopolitical shift in investor allocations.
Across global markets, Brazil (+18% YTD) and Japan (+25% YTD) continued to outperform, underscoring that capital is increasingly becoming selective across countries, sectors and investment themes rather than moving uniformly across global equities.
Overall, the June data indicates that while headline flows remain healthy, investor preferences are becoming increasingly selective across market segments and sectors.