AMFI August 2026 data: Equity mutual fund inflows hit four-month high, led by small and midcap funds

Equity mutual fund schemes attracted ₹29,329 crore in August, marking their highest net inflow in four months, as investors continued to show strong interest in small- and mid-cap funds.

Suranjana Borthakhur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), said the rise in mid- and small-cap flows was supported by steady SIP flows and stronger conviction among distributors.

“While large caps saw outflows for the second consecutive month, mid and small caps continued to strengthen, supported by steady SIP flows and a growing sense of conviction among distributors. This is also reflected in earnings trends, with mid and small caps seeing more upgrades and better representation from faster-growing parts of the economy,” Suranjana Borthakhur said.

The overall mutual fund industry, however, saw its net inflow fall sharply to ₹41,353 crore in August from a staggering ₹2.36 lakh crore in July.

The decline was mainly driven by debt-oriented schemes, which recorded an outflow of ₹8,127 crore in August, compared with an inflow of ₹1.88 lakh crore in July.

Despite the decline in overall inflows, the industry's assets under management (AUM) rose to ₹87.07 lakh crore at the end of August from ₹85.75 lakh crore at the end of July.

Small and mid-cap funds remain in focus

Equity-oriented schemes recorded a net inflow of ₹29,328.62 crore in August. This was the highest inflow since April, when such schemes attracted ₹ 38,440 crore. Equity fund inflows stood at ₹28,973 crore in June and ₹22,908 crore in May.

Small-cap funds attracted the highest net inflow among equity categories at ₹7,973 crore in August, followed by mid-cap funds at ₹6,989 crore.

The trend is similar to what was seen in July, when small-cap funds attracted ₹7,767.5 crore and mid-cap schemes recorded inflows of ₹6,192 crore. Flexi-cap funds also saw healthy inflows of ₹4,709 crore during the month.

However, large-cap funds continued to face pressure. They recorded a net outflow of ₹1,147 crore in August, compared with an outflow of ₹1,322 crore in July.

The continued preference for small- and mid-cap funds comes despite the higher volatility associated with these segments, as investors continue to look for growth opportunities beyond large-cap stocks.

Borthakhur also pointed to the growing interest in specialised investment funds (SIFs), which recorded inflows of nearly Rs 7,600 crore during the month.

“Hybrid funds remained stable through the month, but the standout trend is the continued rise of Specialised Investment Funds (SIFs), which drew inflows of nearly Rs 7,600 crore, on par with the largest equity category. While hybrid strategies still command the bulk of SIF assets, meaningful allocations are now flowing into equity-oriented SIF strategies as well, signalling this is fast becoming a category to watch,” Borthakhur said.

Gold ETF inflows rise sharply

Gold ETFs also continued to attract investor interest in August, recording net inflows of ₹2,597 crore. This was sharply higher than the ₹1,559 crore inflow recorded in July.

In July, gold ETF inflows had fallen from ₹3,443 crore in June, before picking up again in August.

"On the ETF side, they have moved in line with the broader uptick in equity flows. After the sharp rally in gold and silver earlier this year, we're now seeing more normalised, allocation-driven buying rather than momentum chasing which is a healthy sign, especially given continuing global uncertainty, which makes a steady commodity allocation a sensible part of portfolios," said Borthakhur.

Overall, the August data shows that while the mutual fund industry's total inflows were significantly lower than in July, investor interest in equity funds remained strong. Small- and mid-cap categories continued to account for a large share of equity inflows, while large-cap funds remained out of favour.

Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Securities mentioned are illustrative and not recommendations. Investors should do their own research or consult a registered financial advisor before making investment decisions.