Equity fund inflows moderate in January, large-caps gain, gold ETFs attract Rs 24,040 crore

Equity-oriented mutual fund schemes witnessed a moderation in inflows in January 2026, even as overall investor participation in the mutual fund industry remained resilient. Data released by the Association of Mutual Funds in India (AMFI) showed equity fund inflows declining to Rs 24,029 crore during the month, around 14 per cent lower than the Rs 28,054 crore recorded in December. The slowdown reflects some profit-booking and cautious positioning, but does not point to a broad-based retreat from equities.

Despite the month-on-month dip in flows, equity funds continued to command a dominant share of industry assets. As of January 31, 2026, assets under management (AUM) of open-ended equity-oriented schemes stood at Rs 34.86 lakh crore, significantly higher than the Rs 18.90 lakh crore managed by open-ended debt-oriented schemes. This underscores the sustained preference for equities among long-term investors, even amid short-term volatility.

January inflows

At the industry level, mutual funds returned to net inflows in January after a weak December. Total net inflows across categories stood at Rs 1.56 lakh crore, driven largely by a sharp rebound in debt funds. Debt schemes recorded net inflows of Rs 74,827 crore during the month, reversing heavy outflows seen in December as institutional investors and corporates redeployed surplus cash.

Largecaps vs midcaps vs small caps

Within equity categories, large-cap funds saw an improvement in inflows, attracting ₹2,005 crore in January compared with ₹1,567 crore in the previous month. In contrast, mid-cap and small-cap funds experienced a moderation. Mid-cap funds recorded inflows of ₹3,185 crore, down from ₹4,176 crore in December, while small-cap funds saw inflows decline to ₹2,942 crore from ₹3,824 crore. Sectoral and thematic funds bucked the broader trend marginally, logging inflows of ₹1,043 crore, slightly higher than December’s ₹946 crore.

Debt funds

The debt segment showed a mixed picture beneath the headline rebound. While overall debt schemes saw strong net inflows, certain categories continued to face pressure. Credit risk funds reported outflows of ₹126 crore, though lower than December’s ₹172.6 crore. Corporate bond funds witnessed sharper withdrawals of ₹11,473 crore, compared with ₹7,419 crore in the previous month. On a positive note, dividend yield funds turned around, posting net inflows of ₹48 crore after seeing outflows in December.

Hybrid funds emerged as a key area of traction in January. These schemes received net inflows of ₹17,356 crore, a significant jump from ₹10,756 crore in December, reflecting growing investor interest in balanced strategies amid market uncertainty.
Tax-saving equity-linked savings schemes (ELSS) continued to see redemptions, with net outflows of ₹594 crore, although the pace eased compared with ₹718 crore in December. New Fund Offers (NFOs) also saw reduced collections, garnering ₹1,939 crore during the month versus ₹4,074 crore previously.

ETFs: Gold and Silver 

Other segments recorded healthy participation. “Other schemes”, including ETFs, attracted ₹39,955 crore, while solution-oriented schemes saw steady inflows of around ₹341 crore. Gold exchange-traded funds stood out as a major beneficiary of investor demand, with inflows surging to about ₹24,040 crore in January—more than double December’s ₹11,647 crore—highlighting gold’s appeal as a hedge.

Anand Vardarajan, Chief Business Officer, Tata Asset Management, said: "Investor interest continues to be very strong in Flexicap funds, with nearly 72,000 Crs FYTD, while other categories remain varied. Precious metals continue to shine; Gold ETF flows in Jan have doubled over December. January saw record single-month flows of nearly Rs 24,000 cr, taking the FYTD number to approximately Rs 61,000 cr. A ripple effect of this is also seen in the Multi Asset category, where investors have tried to diversify their asset allocation. This category has benefitted from increased investor interest in precious metals. Fixed income flows somewhat stabilized with nearly 74,000 Crs inflow after massive outflows in December. Due to sharp yield movement, it is palpable to see investors staying in liquid funds and funds with shorter-end maturities, such as Ultra and Money Market. SIP numbers have been growing month-on-month. Though small, this is a category to watch out for in the medium to long term."

Overall, mutual fund industry AUM rose to Rs 81.01 lakh crore in January from Rs 80.23 lakh crore in December, supported by market movements and renewed inflows across multiple categories.