Equity Mutual Fund Inflows Surge To Four-Month High, August Investments Climb To ₹29,329 Crore

New Delhi saw a surge in equity mutual fund inflows to a four-month high in August 2026, with investors pouring ₹29,329 crore into these schemes, according to the latest Association of Mutual Funds in India (AMFI) data. This marked a 19% increase from the ₹24,697 crore recorded in July. The strength in August's inflows persisted as the strongest monthly increase since April, when investors had injected ₹38,440 crore into equity-oriented funds.

Small-cap and mid-cap funds continued to attract significant attention, with small-cap funds attracting ₹7,973 crore in net inflows and mid-cap funds following closely with ₹6,989 crore. This demonstrates sustained investor confidence in companies beyond the large-cap segment. Large-cap funds, however, experienced net outflows of ₹1,147 crore during the month, contrasting with the broader equity market trend.

While equity funds experienced momentum, the overall mutual fund industry witnessed a sharp decline in net inflows to ₹41,353 crore in August, down from the ₹2.36 lakh crore recorded in July. This downturn was primarily driven by debt-oriented schemes, which recorded a net outflow of ₹8,127 crore, reversing the significant ₹1.88 lakh crore inflow seen in July.

Despite these declines, the total assets under management (AUM) in the mutual fund industry increased to ₹87.07 lakh crore by the end of August, up from ₹85.75 lakh crore in July.

In a positive turn, investor interest in Gold ETFs also strengthened in August, with the category attracting ₹2,597 crore, significantly higher than the ₹1,559 crore recorded in July. This indicates that even as debt schemes faced withdrawals, investors continued to allocate money towards equity and gold, showcasing a diversified approach to investment amidst market volatility.