Equity mutual funds saw stronger investor interest in February, with net inflows rising over 8% month-on-month to Rs 25,978 crore, snapping two months of decline, according to data from the Association of Mutual Funds in India (AMFI). In the previous month (January 2026), equity funds garnered Rs 24,029 crore investment, data showed.
The rise in inflows suggests that retail investors continued putting money into equities despite ongoing market volatility and corrections in several segments.
SIP inflows, however, logged a mild decline during the month. Overall SIP investment fell 4% month-on-month to Rs 29,845 crore in February against Rs 31,002 crore in the previous month. SIP inflows during the month under review have fallen after maintaining the above Rs 30,000 crore level for two consecutive months.
Among equity sub-categories, flexi cap funds continued to attract the highest inflows. Flexi cap funds have drawn Rs 6,925 crore in February, though this was slightly lower than Rs 7,672 crore in January, a drop of nearly 10%.
Mid-cap funds biggest gainer among equity fund categories
Mid-cap funds emerged as one of the biggest gainers during the month, with inflows rising nearly 26% to Rs 4,003 crore in February, up from Rs 3,185 crore in January.
Investor interest also remained strong in small-cap funds, which received Rs 3,881 crore, compared with Rs 2,942 crore in the previous month – a significant jump of about 32%.
Large and mid-cap funds attracted Rs 3,138 crore in February, almost similar to Rs 3,182 crore in January 2026, Amfi data showed.
Sharp rise in sectoral and thematic fund inflows
Another notable trend was the sharp increase in sectoral and thematic fund inflows, which climbed to Rs 2,987 crore in February, nearly three times the Rs 1,043 crore recorded in January.
Large-cap funds also saw slightly higher inflows, receiving Rs 2,112 crore, compared with Rs 2,005 crore in January. Meanwhile, multi-cap funds drew Rs 1,934 crore, marginally lower than Rs 1,995 crore in the previous month.
Other categories such as focused funds and value/contra funds recorded inflows of Rs 901 crore and Rs 727 crore, respectively.
However, equity-linked savings schemes (ELSS) continued to see outflows for the second consecutive month. The category recorded a net outflow of about Rs 650 crore in February, following a Rs 594 crore outflow in January, possibly reflecting tax-season related redemption or reduced fresh investments.
Overall, the data indicates that investors remain willing to invest in equities, particularly mid- and small-cap segments, even as markets experience short-term volatility.
Debt fund inflows slide 44% in February 2026
Debt mutual funds, however, saw lower net inflows during the month, with income/debt-oriented schemes recording about 44% drop to Rs 42,106 crore in net inflows in February, compared with Rs 74,827 crore in January.
The decline was largely due to sharp swings in short-term liquidity categories such as overnight and liquid funds.
Debt funds see sharp shifts in liquid, overnight categories
Within debt funds, liquid funds recorded the largest inflows, attracting Rs 59,077 crore in February, almost double the Rs 30,682 crore seen in January.
Money market funds also continued to attract sizable inflows, though slightly lower than the previous month. The category saw Rs 6,267 crore in inflows in February, compared with Rs 12,763 crore in January.
On the other hand, overnight funds saw a sharp reversal, reporting an outflow of about Rs 14,006 crore in February, compared with Rs 46,280 crore inflows in January.
Some categories continued to see persistent outflows. Corporate bond funds recorded outflows of Rs 2,302 crore in February, although the pace was lower than the Rs 11,473 crore outflow seen in January.
Hybrid funds see lower inflows as multi-asset demand eases
Hybrid mutual funds witnessed a moderation in inflows during February. Overall, hybrid schemes recorded net inflows of Rs 11,983 crore, lower than the Rs 17,356 crore inflows seen in January, indicating slightly softer investor demand for balanced strategies.
Within the segment, multi-asset allocation funds continued to dominate flows, though inflows declined compared with the previous month. The category attracted Rs 8,476 crore in February, down from Rs 10,485 crore in January. Despite the moderation, the segment remained the biggest contributor within hybrid schemes.
Index funds and gold ETFs
Index funds witnessed a revival in interest by investors, attractive Rs 3,233.40 crore inflows during the month under review against Rs 27.30 crore in January 2026.
On the other hand, gold ETFs saw a drop in interest as inflows fell to Rs 5,254.95 crore in February 2026 as against Rs 24,039.96 crore received in the previous month.
Investors also lost interest in other ETFs in February 2026, putting just Rs 4,487 crore in these funds as compared to Rs 15,005 crore in the previous month.
Mutual fund industry AUM rises to Rs 82 lakh crore
Net assets under management (AUM) of the Indian mutual fund industry surged by 12.54% to an all-time high of Rs 82.03 lakh crore from Rs 81.01 lakh crore in the previous month.