Equity mutual fund inflows in India rose sharply by 31% in September 2026, reaching ₹38,306.55 crore. This growth was led primarily by small- and mid-cap funds, which continued to attract strong investor interest. Additionally, gold and silver exchange-traded funds (ETFs) saw increased investments, highlighting a broad-based confidence among investors.
- Equity mutual fund inflows increased nearly 31% from August to September 2026.
- Small-cap funds attracted the highest net inflows among equity categories.
- Mid-cap and flexi-cap funds also recorded substantial inflows.
- Gold and silver ETFs gained fresh investments during the month.
- Debt funds, especially liquid and money market funds, experienced significant outflows.
What drove the rise in equity mutual fund inflows in September 2026?
The Association of Mutual Funds in India (AMFI) data shows that equity mutual fund schemes attracted net inflows of ₹38,306.55 crore in September 2026, up from ₹29,328.62 crore in August. The increase was mainly due to strong investor interest in small- and mid-cap funds, which are known for their growth potential.
Small-cap funds led the inflows with ₹9,038.57 crore, up from ₹7,973 crore in August. Mid-cap funds followed closely with inflows of ₹7,834.84 crore, compared to ₹6,989 crore the previous month. Flexi-cap funds also saw significant inflows, reflecting investors' confidence across different market capitalization segments.
How did other equity fund categories perform?
Large-cap funds returned to positive territory with net inflows of ₹859.47 crore after experiencing outflows in August. Sectoral and thematic funds attracted ₹1,840.02 crore and ₹1,800.07 crore respectively, showing diversified investor interest.
However, some categories like ELSS (Equity Linked Savings Scheme) tax-saving funds and contra funds recorded net outflows of ₹662.14 crore and ₹97.88 crore respectively.
What trends were observed in debt and hybrid funds?
Debt funds saw significant outflows, particularly liquid funds which experienced the largest outflow of ₹95,743.20 crore. Money market funds and ultra-short-term funds also recorded outflows of ₹50,846.21 crore and ₹11,728.87 crore respectively.
Hybrid schemes had a marginal net outflow of ₹456.68 crore. Despite this, certain hybrid categories like multi-asset allocation funds and aggressive hybrid funds attracted inflows of ₹3,666.98 crore and ₹1,863.54 crore respectively.
How did ETFs perform in September 2026?
Equity ETFs recorded net inflows of ₹9,959.96 crore during the month. Notably, gold ETFs saw increased inflows of about ₹4,500 crore, one of the highest in recent times, reflecting a steady allocation towards commodities amidst global uncertainties. Silver ETFs also recorded positive net inflows, indicating growing investor interest in precious metals.
What do experts say about these investment trends?
Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Mutual Fund, commented that the inflows indicate broad investor conviction across market-cap categories. She noted that small-cap inflows hit a record high and mid-cap inflows reached a multi-month peak, while flexi-cap funds drew nearly ₹7,000 crore.
She added that investors are reallocating with intent, moving money from hybrid funds to pure equity and increasing investments in specialized funds. The rise in gold ETF inflows suggests a disciplined, allocation-led approach to commodities amid global uncertainty. Overall, investors continue to support India's long-term growth story with confidence and discipline.
