National News (10/09/2026): Mutual fund investors increased their exposure to equities in August, with net equity inflows rising sharply to ₹29,315 crore, according to data released by the Association of Mutual Funds in India (AMFI) on Thursday. The latest figure represents an increase of ₹4,630 crore from the ₹24,685 crore recorded in July, marking an 18.8% month-on-month rise in equity-oriented mutual fund inflows.
The August data also highlighted a clear shift in investor preference towards small-cap and mid-cap funds, while large-cap schemes continued to face redemption pressure.
Small-Cap Funds Attract Strong Investor Interest
Small-cap mutual funds emerged as one of the strongest segments during August, recording their highest monthly inflow in at least two years.
Mid-cap funds also witnessed a significant jump in investor allocations, with inflows reaching their highest level in at least one year.
In contrast, large-cap funds registered net outflows for the second consecutive month, indicating weaker investor appetite for the segment compared with smaller companies.
The flow pattern suggests that investors are increasingly looking beyond established large companies for opportunities linked to stronger earnings growth and potentially higher returns.
Why Are Investors Moving Towards Mid- and Small-Caps?
Sandeep Bagla, CEO of TRUST Mutual Fund, said the relatively subdued interest in large-cap schemes could be linked to limited enthusiasm surrounding the large-cap index.
According to Bagla, the index has considerable exposure to sectors such as banking and financial services, IT and FMCG, where performance and growth expectations have remained relatively muted amid prevailing valuations.
He said investor attention has increasingly moved towards mid- and small-cap stocks, resulting in stronger fund flows into these categories.
Another factor supporting the trend is the earnings outlook. Bagla pointed out that companies in the mid- and small-cap segments have witnessed more earnings upgrades compared with their larger counterparts.
As a result, a growing share of incremental earnings growth is coming from smaller companies, a trend that is also reflected in mutual fund allocation patterns.
Bagla expects the stronger flow momentum in mid-cap and small-cap funds to continue for at least the next six months.
SIP Contributions Touch Record High
Systematic Investment Plan (SIP) contributions also strengthened during August.
Investors contributed a record ₹32,297 crore through SIPs, compared with ₹31,115 crore in July. This translates into a 3.8% monthly increase.
The latest figure underlines the continued popularity of systematic investing, with investors maintaining regular contributions to mutual fund schemes despite fluctuations in the equity market.
The industry registered 66.39 lakh new SIP accounts during August. At the same time, around 53.82 lakh SIP accounts were discontinued during the month.
The continued growth in monthly SIP contributions indicates that retail participation through systematic investment routes remains strong.
ETFs Attract More Than ₹10,000 Crore
Exchange-Traded Funds (ETFs) also recorded substantial inflows during August.
According to AMFI data, ETFs collectively attracted ₹10,161 crore during the month.
Equity ETFs accounted for the largest portion, receiving ₹7,237 crore in fresh investments.
Gold ETFs attracted another ₹2,597 crore, while silver ETFs received ₹1,271 crore during August.
The data indicates continued investor interest in diversified market-linked products as well as precious-metal-based investment options.
Specialised Investment Funds See ₹7,699 Crore Inflows
Another notable segment was Specialised Investment Funds (SIFs), which recorded inflows of ₹7,699 crore during August.
The strong mobilisation across different categories comes against the backdrop of sustained retail participation in financial markets and growing interest in investment products beyond traditional large-cap equity schemes.
What August MF Data Indicates
The August figures point towards a changing preference among mutual fund investors. While overall equity inflows strengthened considerably, the distribution of these investments shows a pronounced tilt towards mid-cap and small-cap opportunities.
Large-cap schemes, meanwhile, continued to see outflows, reflecting relatively lower investor enthusiasm for the segment.
At the same time, record SIP contributions demonstrate that investors continue to favour disciplined, periodic investment strategies despite market uncertainties.
With earnings expectations increasingly supporting mid- and small-cap companies, fund flows could remain tilted towards these categories in the coming months. However, valuations and market volatility will remain important factors for investors as they assess the sustainability of the current trend.
Dear Readers and Viewers, Please note that tennews.in: National News Portal daily publishes latest and top ten news from government, politics, national, business, education, technology, lifestyle, entertainment, health etc ten categories. You may submit your e mail and subscribe it to get updates on your e mail. Please also subscribe TEN NEWS NATIONAL YouTube Channel.
Comments are closed.