Investor Confidence Drives 19% Rise in Equity Fund Inflows

The equity mutual funds recorded a net inflow of Rs 29,328.62 crore in August, an increase of about 19 per cent from the previous month, according to data released by the Association of Mutual Funds in India (AMFI) on Thursday.

However, the overall mutual fund industry witnessed inflows of Rs 41,353.60 crore in the month.

Meanwhile, smallcap funds led inflows within equity schemes with Rs 7,973 crore, followed by midcap funds at Rs 6,989 crore, flexicap funds at Rs 5,059 crore and large and midcap funds at Rs 3,873 crore.

In addition, debt schemes saw a net outflow of Rs 8,127 crore, while liquid funds recorded a net inflow of Rs 19,934 crore and overnight funds saw an outflow of Rs 30,654 crore. Hybrid schemes attracted Rs 10,045 crore during the month led by multi asset allocation funds with Rs 3,671 crore and arbitrage funds with Rs 3,789 crore of net inflows.

Moreover, exchange traded funds recorded a net inflow of Rs 10,161 crore in which equity ETFs accounted for Rs 7,237 crore of the inflows, while gold ETFs attracted Rs 2,597 crore.

Total assets under management of mutual funds stood at Rs 87.08 lakh crore at the end of August, an increase of more than 1 per cent from the previous month, compared with average assets of Rs 88.31 lakh crore during the month.

Earlier in the week, the Securities and Exchange Board of India's (SEBI) data showed that net systematic investment plan (SIP) inflows into mutual funds surged to a record Rs 2 trillion in FY26 despite market volatility which led to rise in SIP account closures.

The net SIP inflow accounted for around 56 per cent of the Rs 3.5 trillion in gross SIP investments during FY26, the highest share in at least three years. The corresponding share stood at 54 per cent in FY25.