AMFI April Data Highlights: Equity Inflows Dip 5% MoM, SIP Contributions Slow Down

Mutual funds recorded a strong rebound in overall flows in April, helped by heavy buying in debt schemes, even as equity inflows cooled. Data from the Association of Mutual Funds in India showed net equity inflows eased 5% month-on-month to ₹38,440.20 crore from ₹40,450.26 crore in March, amid slower interest in sectoral and thematic strategies.

Systematic investment plan contributions stayed firm, slipping only marginally to ₹31,115 crore in April from the record ₹32,087 crore in March. Equity assets under management for mutual funds rose by ₹3,76,654 crore to ₹35,74,352 crore in the same month, reflecting both inflows and market gains across categories despite heightened volatility.

Mutual funds equity inflows and SIP trends

Within equity mutual funds, multi-cap, small-cap, mid-cap and flexi-cap schemes saw higher contributions, while other segments reported weaker demand. Focused funds showed the sharpest change, with inflows falling 51% month-on-month to ₹1,194.80 crore. Value and contra funds registered a 31% decline in inflows to ₹1,478.08 crore, and thematic and sectoral funds saw contributions drop 28% to ₹1,949.36 crore.

Flexi-cap mutual funds remained popular, drawing ₹10,147.85 crore in April, slightly higher than ₹10,054.12 crore a month earlier. Small-cap mutual funds reported a 10% rise in inflows to ₹6,885.90 crore, while mid-cap mutual funds posted an 8% increase to ₹6,551.40 crore, with both categories hitting fresh records. Multi-cap mutual funds collected ₹3,806.01 crore, up 27.65% from ₹2,981.55 crore.

Mutual funds market performance and investor positioning

Market performance appears to have supported these mutual funds flows. During April, the Nifty Smallcap 100 gained 18.4% and the Nifty Midcap 100 advanced 13.6%, beating the Nifty 50's 7.5% rise and the Sensex's 6.9% gain.

"Continued investor participation in mutual funds despite volatile market conditions reflects the growing maturity and resilience of retail investors. investors increasingly preferred diversified allocation strategies. This shift indicates a balanced approach towards wealth creation, with investors focusing on asset allocation, stability and long-term goal-based investing amid global uncertainty," explained A Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd.

"The sustained net equity inflow of ₹38,440 crore in April, despite a slight moderation from the previous month, highlights a mature and resilient investor base committed to the long-term wealth creation story. While macro uncertainties persisted, retail participants continued to allocate structurally to diversified strategies, evidenced by robust flows into flexi-cap, small-cap, and mid-cap funds," stated Archit Doshi, Senior Vice President at PL (Prabhudas Lilladher) AMC

Mutual funds debt funds and overall flows

Overall, mutual funds flows turned positive in April, reversing the heavy outflows seen in March. Total industry inflows stood at ₹3,22,402.98 crore, compared with net redemptions of ₹2,39,910 crore in the previous month. The swing was driven almost entirely by debt-oriented mutual funds, which attracted large short-duration inflows when corporate and institutional money returned after year-end withdrawals.

Debt schemes within mutual funds posted a sharp recovery in April 2026, with net inflows of about ₹2.47 lakh crore after outflows of ₹2.94 lakh crore in March. Liquid, overnight and other short-duration mutual funds received most of this money. "This reflects the typical post-year-end redeployment of liquidity after March outflows. However, long-duration and gilt categories continued to see outflows, indicating persistent caution on interest rate risk, while corporate bond funds recovered with moderate inflows," said Umesh Sharma, CIO(Debt), The Wealth Company Mutual Fund.

Alternative products within mutual funds also attracted fresh interest. Inflows into gold ETFs rose to ₹3,040.31 crore in April, up from ₹2,265.68 crore a month earlier, as investors used the asset class for diversification and possible hedging. Multi-asset allocation mutual funds saw net inflows of ₹5,113 crore, with the monthly contribution becoming more important over time.