New Delhi, Aug. 12 -- While Indian equities have been weighed down by substantial US tariffs, modest Q1 earnings, and sustained selling by overseas investors, domestic retail investors have maintained their confidence in the fundamentals of the economy, shrugging off these near-term headwinds as they pump record funds into mutual funds in July.

As per the data released by AMFI (Association of Mutual Funds of India) on Monday, August 11, equity fund categories witnessed the highest-ever monthly net inflow of Rs.42,702 crore, aided by renewed interest in thematic and sectoral schemes and continued inflow into small-cap, mid-cap, and flexi-cap schemes.

Besides small- and mid-cap funds, large-cap funds saw net inflows of Rs.2,125 crore, und...