Equity mutual fund inflows plummet 39% YoY to ₹24,000 cr in Jan; flexi cap remains investors' favourite: AMFI

Equity mutual fund inflows declined in January 2026, falling 14% month-on-month to ₹24,028 crore, according to data released by the Association of Mutual Funds in India (AMFI). 

On a year-on-year basis, equity inflows in January were down nearly 39% from ₹39,687 crore in January 2025.

"The month of January we have seen extreme volatility in the market, particularly of US government's attempts to acquire Greenland, its intervention in Venezuela, and its imposition of new tariffs heightened the uncertainty," reasoned Venkat Chalasani, Chief Executive, AMFI.

Within equity categories, flexi-cap funds saw the highest inflows in January at ₹7,672 crore. Mid-cap funds saw net inflows of ₹3,185 crore, while large and mid-cap funds recorded ₹3,182 crore. Small-cap funds recorded ₹2,942 crore, and large-cap funds received ₹2,005 crore. Whereas ELSS funds saw net outflows of ₹594 crore during the month.

Debt-oriented schemes recorded net inflows of ₹74,827 crore. Overnight funds recorded ₹46,280 crore, liquid funds saw inflows of ₹30,682 crore, and money market funds received ₹12,763 crore. 

However, corporate bond funds reporting net outflows of ₹11,473 crore, while dynamic bond funds and gilt funds saw outflows of ₹1,435 crore and ₹1,428 crore, respectively.

Hybrid schemes recorded net inflows of ₹17,356 crore in January. Multi-asset allocation funds led the category with inflows of ₹10,485 crore, followed by arbitrage funds at ₹3,293 crore and balanced advantage funds at ₹1,839 crore.

Gold ETFs recorded net inflows of ₹24,040 crore, while other ETFs attracted ₹15,006 crore. Index funds saw marginal inflows of ₹27 crore.

Overall, open-ended mutual fund schemes recorded net inflows of ₹1.56 lakh crore in January 2026, taking the industry’s total assets under management to ₹81.01 lakh crore at the end of the month.

What do analysts have to say?

Commenting on January month's AMFI data with respect to equity funds, Himanshu Srivastava, Principal Research, Morningstar Investment Research India said that the decline indicates a moderation in pace rather than any meaningful deterioration in investor sentiment. "Flows remained constructive despite bouts of market volatility, supported by steady SIP contributions and continued confidence in the long-term structural growth prospects of Indian equities," he said.

According to him, the moderation in overall inflows was largely driven by cooling momentum in the mid- and small-cap segments. "The pace slowed sharply compared with the previous month, reflecting elevated valuations and recent corrections prompting investors to adopt a more cautious and selective approach. Some amount of profit booking after the strong performance seen over the past years also weighed on incremental allocations."

"Overall, the flow trend suggests that equity participation remains structurally intact, but investor behaviour is becoming more balanced and risk-aware, with allocations gradually shifting toward stability, diversification, and valuation comfort rather than aggressive positioning in slightly riskier segments," he said.