Record inflows into equity funds even as NFO contribution dwindles

Existing equity schemes attracted record inflows in March and April 2026 as investors used market corrections to increase allocations despite weak NFO mobilisation

The momentum in equity fund inflows over the past two months marks a departure from earlier phases of strong collections, when new fund offers (NFOs) accounted for a meaningful share of inflows. This time, the surge has been driven almost entirely by investments into existing schemes.

 

Data excluding NFO collections underscores the shift. Net inflows into existing equity schemes touched a record ₹38,503 crore in March 2026 and remained nearly unchanged at ₹38,410 crore in April 2026. The previous peak was recorded in October 2024, when existing schemes saw net inflows of ₹37,840 crore.

 

NFO mobilisation, meanwhile, fell to just ₹30 crore in April, accounting for barely 0.1 per cent of total net equity inflows — the lowest share since at least April 2024. In March, NFOs contributed only 4.8 per cent of inflows.

 

This marks a sharp contrast with earlier trends. During 2024 and 2025, whenever monthly equity inflows crossed ₹30,000 crore, NFO collections typically formed a sizeable portion of the total. Between April 2024 and February 2026, there were 10 instances when monthly equity net inflows exceeded ₹30,000 crore. In seven of those months, NFOs accounted for more than 20 per cent of inflows, while in the remaining months, their contribution hovered around 10 per cent.

 

According to industry executives, the strong inflows into existing schemes in recent months reflect investment opportunities created by the market correction. “The record net inflows into active equity schemes over the past two months reflect several converging factors. Market volatility, driven by global macro uncertainty and sustained foreign institutional investor outflows, triggered a meaningful correction from recent peaks, making valuations relatively attractive across several pockets of the market,” said Suranjana Borthakur, head of distribution and strategic alliances at Mirae Asset Investment Managers (India).

 

Gaurav Goyal, head of sales and marketing at Canara Robeco Asset Management Company, said the trend also points to growing investor maturity. “The high inflows in recent months indicate increasing maturity among investors and distributors. Earlier, periods of market volatility would often trigger major outflows. Now, Indian investors are increasingly using market corrections as an opportunity to raise allocations to equities,” he said.

 

Flexicap, midcap, and smallcap schemes accounted for the bulk of inflows over the past two months. The strong equity inflows come as a relief for the mutual fund industry, which has historically seen a slowdown in collections during market corrections as fund launches tapered off.