Equity mutual funds witnessed a sharp increase in investor inflows during September 2026, even as substantial withdrawals from debt schemes pushed the overall mutual fund industry into negative territory.
The data released by the Association of Mutual Funds in India (AMFI) showed that equity-oriented schemes attracted Rs38,306.55 crore during the month, compared with Rs29,328.62 crore in August, representing growth of nearly 31%.
Monthly systematic investment plan (SIP) contributions also reached a record Rs32,490 crore, indicating continued participation through regular investment plans.
However, the industry reported overall net outflows of Rs1,33,214.25 crore, reversing net inflows of Rs41,368.05 crore in the preceding month.
Small-Cap, Mid-Cap Funds Lead Inflows
Small-cap mutual funds attracted the highest investments among equity categories, recording net inflows of Rs9,038.57 crore. Mid-cap schemes followed with Rs7,834.84 crore.
Together, these categories received Rs16,873.41 crore, accounting for approximately 44% of total equity fund inflows. Flexi-cap funds also registered stronger demand, with investments increasing to Rs6,701.80 crore from Rs5,059.42 crore previously.
Large-cap schemes returned to positive territory, attracting Rs859.47 crore after witnessing withdrawals in June and July. The September increase followed an approximately 19% rise in equity inflows during August.
Debt MFs See ₹1.83 Lakh Crore Withdrawals
Debt-oriented mutual funds experienced significant selling pressure, with net outflows widening to Rs1,83,155.76 crore from Rs8,127.32 crore in August.
The monthly deterioration exceeded Rs1.75 lakh crore.
Liquid funds accounted for the largest withdrawals at Rs95,743.20 crore, compared with net investments of Rs19,934.29 crore a month earlier.
Money market funds also recorded outflows of Rs50,846.21 crore, reversing August inflows of Rs11,734.71 crore.
Combined withdrawals from these two categories reached approximately Rs1.47 lakh crore.
September's quarter-end timing may have contributed to the decline, as companies and institutional investors typically adjust short-term investments to meet liquidity requirements.
The contrasting trends highlight sustained demand for equity investments alongside substantial short-term redemptions from debt schemes.
