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. This was the highest monthly net inflow after July 2025.

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.

"It was heartening to see nearly Rs 40,500 Crs in equity category and investors used the market fall in March to increase their equity allocations. As FY26 comes to a close, we have seen some major shifts in flows. Flexicap saw the highest inflow for the month and for the year. Mid and small cap where close next.

Hybrid category saw net outflows across save and except multi asset where investors sought some comfort. Arbitrage saw very large outflows in March which was somewhat surprising.

However, fixed income saw massive outflows due to seasonally tight liquidity with institutional business. All funds in this category closed negative due to spike in yields coupled with liquidity pressure," said Anand Vardarajan, Chief Business Officer, Tata Asset Management.

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.