India’s mutual fund industry started the new year on a high note, with January 2026 inflows reaching an impressive ₹1.56 lakh crore, reversing December’s outflows. AMFI data spotlights Gold ETFs as the star performer, boasting a 50% growth and the highest monthly inflow across equity segments at ₹24,039.96 crore—double December’s figure.
This gold rush complements a solid ₹24,029 crore in active equity inflows, down slightly by 14% from December but still robust compared to prior months like November’s ₹29,911 crore.
Flexi-cap funds dominated equity with ₹7,672.36 crore, showcasing investor preference for versatile portfolios. Large-caps added ₹2,004 crore, mid-caps ₹3,185.47 crore, small-caps ₹2,942.11 crore, and sectoral/thematics ₹1,042 crore—a 9.2% uptick.
Debt markets rebounded spectacularly post-December rout, with ₹74,827.13 crore inflows. Overnight and liquid funds led with ₹46,280 crore and ₹30,681.55 crore respectively.
Hybrids grew to ₹17,356.02 crore from ₹10,755.57 crore, arbitrage to ₹3,293.30 crore. Twelve NFOs raised ₹1,939 crore, including strong sectoral launches, while SIPs remained steady at ₹31,002 crore.
Experts attribute this resilience to consistent SIP contributions and optimism about India’s equity markets. ‘Market volatility hasn’t deterred flows,’ says Morningstar’s Principal Researcher Himanshu Srivastava. ‘SIP steadiness and long-term growth prospects fuel positivity, with large-cap strength compensating for mid-small cap moderation.’
Historical context: July 2025’s record ₹42,702 crore equity inflow sets a benchmark, yet January’s overall surge signals deepening market maturity. Investors are clearly diversifying across asset classes, from gold’s security to equity’s potential.
Looking ahead, sustained SIP discipline and tactical shifts towards flexi-caps and debt could define 2026’s investment narrative, offering lessons in balanced portfolio building amid uncertainties.