India’s mutual fund industry continued its strong growth momentum in April 2026, with total net inflows into mutual funds at Rs 3.22 lakh crore and overall Assets Under Management (AUM) growing to Rs 81.92 lakh crore, as per the latest monthly data released by the Association of Mutual Funds in India (AMFI). 

Equity funds

In April 2026, net inflows were Rs 38,440.20 crore for growth and equity-oriented schemes, which is a drop of 5% from the month of March. The total AUM of the category stood at Rs 35.74 lakh crore at the end of the month. The highest inflows among equity categories were seen in flexi cap funds at Rs 10,147.85 Cr, indicating investors’ preference for diversified strategies that give fund managers flexibility across market capitalisations.

Small-cap funds followed with net inflows of Rs 6,885.90 Cr, while mid-cap funds received Rs 6,551.40 Cr. Large-cap and mid-cap funds remained favorites with inflows of Rs 4,490.49 Cr, while multi-cap funds gathered Rs 3,806.01 Cr during the month. ELSS witnessed net outflows of Rs 567.73 Cr while sectoral and thematic funds saw net inflows of Rs 1,949.36 Cr. 

The above data indicate that investor interest in equity-oriented schemes has remained consistent, particularly in flexi cap, small cap, mid cap, and sectoral funds, despite volatile market conditions. Large inflows were also seen in debt schemes, driven by luid funds and overnight funds.

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Debt mutual funds

Another major contributor to overall inflows was debt-oriented mutual funds. Schemes with an income/debt focus received net inflows of Rs 2.47 lakh crore in April 2026. “This reflects the typical post year-end redeployment of liquidity after March outflows. However, long-duration and gilt categories continued to see outflows, indicating persistent caution on interest rate risk, while corporate bond funds recovered with moderate inflows,” said Umesh Sharma, CIO(Debt), The Wealth Company Mutual Fund.

Liquid funds topped the category with huge net inflows of Rs 1.65 lakh crore, followed by overnight funds, which saw net inflows of Rs 31,420.45 crore. Money market funds attracted Rs 20,642.59 crore while ultra short duration funds attracted Rs 15,651.87 crore. Net inflows of Rs 6,196.51 crore were also seen in corporate bond funds. Short-duration funds received Rs 3,917.21 crore and low-duration funds Rs 7,093.26 crore. 

Gilt funds recorded net outflows of Rs 1,048.49 Cr, while long-duration funds saw outflows of Rs 727.19 Cr. Dynamic bond funds also witnessed outflows of Rs 704.60 Cr. 

Hybrid funds 

Hybrid schemes recorded healthy inflows of Rs 20,565.24 crore in April 2026. Arbitrage funds were the top performers in the hybrid category with net inflows of Rs 12,378.46 crore. Multi-asset allocation funds attracted Rs 5,113.30 crore and dynamic asset allocation or balanced advantage funds garnered Rs 1,773.07 crore. Aggressive hybrid funds saw inflows of Rs 1,488.64 crore.

Total folios 

The total number of mutual fund folios reached 27.53 crore as of April 30, 2026 which was 27.39 Cr as of March 2026, which is a jump of approximately 14 lakh folios. 

New fund launches in April 2026 

AMFI data also showed the launch of several new schemes in April 2026. JioBlackRock Large Cap Fund mobilised Rs 30 crore in the equity category; Groww Arbitrage Fund collected Rs 41 crore. Among index fund launches, notable launches during the month comprised SBI CRISIL-IBX Financial Services Debt Index Funds, Axis Nifty India Defence Index Fund, and Motilal Oswal BSE Top 10 Banks ETF. In April 2026, 11 new schemes mobilised Rs 828 crore overall.

Experts’ reaction to AMFI data for April 2026

“From an overall perspective, equity participation is structurally deepening and diversifying. Investors are not clustering into a single market cap segment or a single theme; flows are spread across Flexi Cap, Small Cap, Mid Cap, Large & Mid Cap, and Multi Cap simultaneously. That is the behaviour of a market where investor sophistication is genuinely improving,” commented Nitin Agrawal, CEO, Mutual Funds, InCred Money. 

“Second, the shift toward balanced structures is gathering pace. Multi Asset Allocation funds pulling in over Rs 5,000 crore in a single month, alongside a recovery in Arbitrage and sustained inflows into Dynamic Asset Allocation funds, suggest that investors are beginning to think in portfolio terms rather than individual fund terms. That is a meaningful structural evolution,” Nitin Agrawal added further.

“Overall, April trends indicate renewed allocation to short-term debt post year-end, sustained equity optimism, and increasing preference for diversified strategies, with investors remaining cautious on duration risk amid global uncertainty,” stated Umesh Sharma.