Equity MF Inflows, SIP Contributions Ease in April; Debt Funds See Sharp Rebound

Equity mutual fund inflows declined 5% month-on-month in April 2026, while systematic investment plan contributions also eased from record levels, according to data released by the Association of Mutual Funds in India 

Net inflows into equity schemes stood at ₹384.40 billion in April, compared with ₹404.50 billion in March. On a year-on-year basis, however, equity inflows rose 58% from ₹242.69 billion recorded in April 2025.  

SIP contributions fell 3% month-on-month to ₹311.15 billion in April from a record ₹320.87 billion in March. Despite the moderation, SIP inflows remained 18% higher than ₹264.00 billion seen in April last year, indicating continued retail participation through periodic investment plans.

Among equity categories, flexi-cap funds continued to attract the highest inflows for the ninth consecutive month since August 2025. The category recorded inflows of ₹101.47 billion in April, marginally higher than ₹100.54 billion in March.

Small-cap funds received inflows of ₹68.85 billion, up 9.9% from ₹62.63 billion in March, while mid-cap funds attracted ₹65.51 billion, compared with ₹60.63 billion in the previous month. Large-cap funds saw inflows decline to ₹25.24 billion from ₹29.97 billion in March.

Sectoral and thematic funds recorded lower inflows at ₹19.49 billion against ₹26.98 billion in March, indicating moderation in category-specific allocations. Focused funds received inflows of ₹11.94 billion, the lowest among categories that remained in positive territory.

Debt mutual funds witnessed a sharp reversal in April after significant outflows in the previous month. Debt schemes recorded net inflows of ₹2.47 trillion compared with outflows of ₹2.94 trillion in March.

Liquid funds led debt inflows with ₹1.65 trillion, followed by overnight funds, which attracted ₹314.20 billion. The reversal in debt fund flows helped overall mutual fund industry inflows turn positive during the month.

Total inflows into mutual funds stood at ₹3.22 trillion in April, compared with net outflows of ₹2.40 trillion in March. The recovery was primarily driven by debt-oriented schemes.

Equity assets under management rose by ₹3.77 trillion during the month to ₹35.74 trillion, supported by market gains and continued inflows across most equity categories.