Last month brought an upbeat mood for mutual fund investors. New data from the Association of Mutual Funds in India (AMFI) shows that equity fund inflows rose 8% in February, reaching ₹25,977 crore.
Investment patterns shifted across market caps. Inflows into large-cap funds rose marginally to ₹2,112 crore. However, mid-cap funds spiked 26% to ₹4,003 crore, while small-cap funds jumped 32% to ₹3,881 crore.
Not all categories saw growth. Inflow into flexi-cap funds, which invest across companies of all sizes, dropped from ₹7,672 crore to ₹6,924 crore. February also saw 21 new fund offers (NFOs) launch, raising a total of ₹4,979 crore. These launches included eight equity funds, four index funds, one dynamic asset allocation fund, and seven exchange-traded funds (ETFs).
| Category | January ( ₹ crore) | February ( ₹ crore) |
| Large Cap | 2,005 | 2,112 |
| Mid Cap | 3,185 | 4,003 |
| Small Cap | 2,942 | 3,881 |
| Flexi cap | 7,672 | 6,924 |
Trends in Gold and Index Funds
Inflows into index mutual funds, which track specific market benchmarks, surged to ₹3,233 crore from a low of ₹27.30 crore. Conversely, gold ETFs saw a sharp drop. Inflows fell to ₹5,255 crore in February following a dip in gold prices, down from ₹24,040 crore in January. Other ETFs also declined, falling to ₹4,487 crore from ₹15,005 crore, according to the AMFI’s February data.
Drop in inflows
A number of mutual fund categories saw significant declines in inflows. For example, inflows into debt mutual funds across durations fell from ₹74,827 crore in January to ₹42,106 crore in February.
Inflows into multi-asset allocation funds fell from ₹10,485 crore to ₹8,476 crore. And inflows into balanced advantage funds dropped from ₹1839 crore in January to ₹1,521 crore in February.
Expert insights
Himanshu Srivastava of Morningstar Investment Research India noted that a notable feature of the month was the sharp pickup in flows into the mid-cap and small-cap categories.
“Mid-cap funds attracted net inflows of about ₹4,003 crore, while small-cap funds garnered around ₹3,881 crore, both significantly higher than the previous month. This indicates that investors continued to selectively allocate towards higher-growth segments despite valuation concerns.”
Feroze Azeez, Joint CEO, Anand Rathi Wealth Limited, said, “The February 2026 AMFI data reflects the growing maturity of Indian retail investors. Despite phases of market volatility and an uncertain global backdrop, equity mutual funds continued to attract healthy inflows, which rose about 8% month on month to nearly ₹26,000 crore.
“SIP contributions during the month were marginally lower than the record level seen in January, but they remain close to the ₹30,000 crore mark and continue to show strong growth on a yearly basis. This clearly reflects the discipline that retail investors are bringing to their investment journey.”
Nitin Agrawal, CEO, Mutual Funds, InCred Money, meanwhile, said that the standout takeaway from February’s AMFI data is the resilience of equity inflows despite ongoing market volatility.
“Categories like Flexi-cap, Mid-cap and Small-cap continued to attract meaningful allocations, a signal that investors are leaning into segments that have witnessed drawdowns and now offer relative value. Gold ETFs, which saw record inflows in January 2026, appear to have moderated, suggesting that some of that defensive positioning is unwinding and equity is regaining its appeal as the preferred vehicle for long-term wealth creation,” said Agrawal.
Ovas Bakshi, Head-Retail Sales, Kotak Mahindra AMC, said, “Equity Flows remain strong despite market volatility at ₹26,212 crore in Feb vs ₹24,355 crore in Jan, showing continued retail investor confidence.”
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