Small‑Cap Leads August Inflows as Large‑Cap Funds Register Outflow

Equity mutual funds in India recorded a net inflow of ₹29,328.62 crore during August, according to the Association of Mutual Funds in India (AMFI). The surge was driven primarily by strong participation in small‑cap funds, which posted a net addition of ₹7,973.33 crore, up from ₹7,767.50 crore in July.

Mid‑cap funds followed with a net inflow of ₹6,989.40 crore, an increase over July’s ₹6,192.31 crore. Flexi‑cap schemes added ₹5,059.42 crore, while large‑cap funds continued to face withdrawals, registering a net outflow of ₹1,147.36 crore, an improvement from the July outflow of ₹1,321.69 crore.

The combination of large‑ and mid‑cap funds still attracted positive capital, recording a net inflow of ₹3,872.79 crore, higher than the ₹3,425.37 crore seen in the previous month.

Other categories such as multi‑cap, contra and focused funds also posted net inflows of ₹3,732.77 crore, ₹1,328.01 crore and ₹994.74 crore respectively. Equity ETFs recorded a net inflow of ₹7,237.49 crore.

The total assets under management (AUM) of the mutual fund industry rose to ₹87.07 lakh crore, up from ₹85.75 lakh crore in July. SEBI’s recent data indicates that net systematic investment plan (SIP) inflows for FY26 have reached a record ₹2 lakh crore, representing about 56% of total SIP investments for the year.