Net inflows into Indian equity mutual funds saw a significant dip in July 2026, falling 14.8% month-on-month to ₹24,685 crore. This figure is down from ₹28,961 crore recorded in June, according to data released by the Association of Mutual Funds in India (AMFI).
Large-Cap Funds Experience First Outflow Since December 2023
A notable shift occurred in large-cap funds, which registered a net outflow of ₹1,322 crore in July. This marks the first time this category has seen a monthly outflow since December 2023. In contrast, large-cap funds had attracted an inflow of ₹2,067.5 crore just the previous month, indicating a sharp reversal in investor sentiment.
This downturn for large-cap funds comes amidst a period where they have consistently underperformed compared to their mid-cap and small-cap counterparts. The month-on-month swing in net flows for large-caps alone amounted to ₹3,389.5 crore.
Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers, highlighted the significance of this trend, stating that the “₹1,300-crore outflow from large-cap funds stood out, even as small-cap inflows increased despite the overall moderation in equity flows.”
Broader Moderation Across Categories
The overall moderation in equity fund inflows was not limited to large-caps. Other categories such as large & mid-cap, focused, flexi-cap, and sectoral/thematic funds also experienced weaker flows during the month, contributing to the broader decline in net investments.