Equity mutual fund inflows fall 14.8% in July; Large-cap funds see first outflow since December 2023

Net inflows into equity mutual funds declined 14.8% month-on-month to ₹24,685 crore in July 2026, compared with ₹28,961 crore in June, according to data released by the Association of Mutual Funds in India (AMFI). The moderation was led by weaker flows into large-cap, large & mid-cap, focused, flexi-cap and sectoral/thematic funds.

Large-cap funds see sharp reversal

Large-cap funds recorded a net outflow of ₹1,322 crore in July, compared with an inflow of ₹2,067.5 crore in June. This marked the category’s first monthly outflow since December 2023. The month-on-month swing in net flows was ₹3,389.5 crore.

The reversal comes as large-cap funds have underperformed mid- and small-cap segments in recent months. Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers, said the ₹1,300-crore outflow from large-cap funds stood out, even as small-cap inflows increased despite the overall moderation in equity flows.

Flexi-cap, focused funds

Flexi-cap funds remained among the larger destinations for equity investments, but inflows moderated to ₹4,709 crore in July from ₹5,231 crore in June, a decline of around 10%.

Focused funds recorded a sharper fall, with inflows dropping 42.6% to ₹642 crore from ₹1,118 crore in June. Large & mid-cap funds saw inflows decline 20.7% to ₹3,425 crore, compared with ₹4,321 crore in the previous month.

Sectoral and thematic funds also witnessed lower inflows. The category received ₹1,328.3 crore in July, against ₹1,469.3 crore in June, a decline of around 9.6%.

Small-cap funds buck the trend

Small-cap funds emerged as a key exception to the broader slowdown. Net inflows jumped 38.7% to ₹7,767.5 crore in July, from ₹5,602 crore in June.

Mid-cap funds also recorded a marginal increase, with inflows rising to ₹6,192 crore from ₹6,090.2 crore. Multi-cap funds saw inflows increase 5.1% to ₹3,227 crore from ₹3,070 crore.

Santosh Joseph, Founder and Partner at Germinate Investor Services LLP, said the flow trends reflected investor preference for mid- and small-cap categories, while flexi-cap funds continued to attract diversified equity allocations.

Equity Mutual Fund Inflows: July vs June 2026