Equity inflows moderate, flexicap funds lead in Samvat 2082 amid volatility

Flexicap, smallcap and midcap funds accounted for 62% of equity inflows in Samvat 2082, while investments in sectoral and thematic schemes fell by over two-thirds.

Mutual fund (MF) investors lowered their equity scheme deployment in Samvat 2082 even as they continued to invest into flexicap, smallcap and midcap funds. The net investments into active equity scheme during the October 2025-September 2026 period stood at ₹3.6 trillion, 8 per cent lower compared to ₹3.9 trillion in the October 2024-September 2025 period.

 

Investor preferences changed regarding categories. Sectoral and thematic funds, which attracted the highest amount during the 12-month period ending September 2025, were placed at the 6th spot in the latest Samvat with inflows declining by over two-thirds to ₹21,654 crore.

 

Flexicap, smallcap and midcap funds drew the bulk of the inflows in the October 2025-September 2026 period, accounting for 62 percent of the total net equity inflows.

 

The investor preference for these categories was driven by their comparatively better performance. Smallcap and midcap funds delivered better returns vis-a-vis other categories amid a sharper correction in largecap stocks due to foreign investor selling.

 

The three categories also contributed the most to the account additions in mutual funds. In the last quarter (July-September), smallcaps added 30 million folios, the highest among all active equity categories. Midcap funds and flexicap funds followed with 27 million and 25 million account additions.

 

The strong inflows, despite equity market volatility, were supported by resilient systematic investment plan (SIP) inflows. In September, SIP inflows was at an all-time-high of ₹32,490 crore.