AMFI March 2026 data: Flexi-cap funds drive equity inflows as MF flows jump 56% to ₹40,450 crore

Equity mutual funds recorded a net inflow of ₹40,450.26 crore in March, compared to ₹25,977.81 crore in February, as per the monthly data released by the Association of Mutual Funds in India

Among equity schemes, flexi-cap funds topped the charts with net inflows of ₹10,054.12 crore, reflecting strong investor preference for dynamic allocation strategies amid evolving market conditions.

Small-cap funds attracted inflows of ₹6,263.56 crore, while mid-cap funds saw ₹6,063.53 crore.

Large & mid-cap funds recorded inflows of ₹5,307.25 crore, followed by large-cap funds at ₹2,997.84 crore and multi-cap funds at ₹2,981.55 crore, pointing to a balanced allocation strategy across market capitalisations.

In contrast, ELSS (tax-saving) funds witnessed an outflow of ₹437.34 crore.

Passive funds and ETFs see strong traction

Passive investment products continued to gain momentum during the month. Other ETFs recorded net inflows of ₹19,802.41 crore, making it the largest contributor among passive categories.

Index funds attracted ₹8,168.76 crore, indicating continued preference for low-cost, benchmark-linked investing. Meanwhile, Gold ETFs saw inflows of ₹2,265.68 crore, reflecting steady demand for safe-haven assets amid global uncertainty.

Fund of Funds (FoFs) also recorded inflows of ₹530.75 crore, adding to the overall diversification trend within the mutual fund industry.

Debt mutual funds see sharp outflows

Debt mutual funds witnessed a significant reversal in investor flows in March, recording steep outflows of around ₹2.94 lakh crore, compared with inflows of ₹42,106 crore in the previous month.

The decline in flows was largely driven by liquidity-focused segments, with liquid funds accounting for the biggest share of redemptions. The category saw outflows of approximately ₹1.35 lakh crore, reversing the inflows of about ₹59,077 crore seen in February, indicating a sharp shift in short-term cash deployment strategies.

Similarly, overnight funds also faced considerable pressure, witnessing outflows of around ₹40,228 crore during the month. This marks a notable change in investor positioning, as earlier months had seen steady inflows into ultra-short duration and highly liquid debt instruments.

Hybrid funds see outflows in March

Hybrid mutual fund schemes witnessed net outflows of around ₹16,538 crore in March, indicating profit booking and portfolio rebalancing by investors during the month.

Solution-oriented and thematic categories show mixed trend

In contrast, solution-oriented funds, which include retirement and children-focused schemes, continued to attract steady interest, recording inflows of about ₹256 crore.

Closed-ended and interval schemes also remained in positive territory, posting inflows of approximately ₹226 crore.

Focused funds saw strong traction, with inflows rising to around ₹2,425 crore.

However, sectoral and thematic funds overall witnessed a moderation in flows, coming in at about ₹2,699 crore.

Overall, the mutual fund industry reported a net outflow of approximately ₹2.4 lakh crore in March, reversing an inflow of about ₹94,530 crore in February. The decline was primarily driven by heavy redemptions in debt schemes, which alone saw outflows of nearly ₹2.95 lakh crore during the month.

As a result, the industry’s total assets under management (AUM) declined to around ₹73.73 lakh crore at the end of March, compared with ₹82.03 lakh crore at the end of February, reflecting the impact of large-scale withdrawals and market movements.

Despite the overall outflow, systematic investment plans (SIPs) showed resilience, with monthly contributions rising to ₹32,087 crore in March from ₹29,845 crore in the previous month, according to data released by AMFI.

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