Equity MF inflows fall 5% in April 2026: AMFI

Equity inflows ease in April after a strong March

Equity mutual fund inflows fell 5% month-on-month in April 2026, signalling a softer pace of fresh allocations after a strong March. Data cited for April showed net equity inflows of ₹38,440 crore, down from ₹40,450 crore in March 2026. Even with the sequential decline, the number still indicates continued participation in equity-oriented schemes. The broader mutual fund picture in April was described as mixed, with debt and hybrid funds seeing a recovery and higher investor participation. However, the available data points for April in the provided information are specifically on equity inflows.

Year-on-year picture remains strong

Despite the month-on-month dip, April 2026 equity inflows were substantially higher on a yearly basis. Net equity inflows rose 58% year-on-year from ₹24,269 crore in April 2025 to ₹38,440 crore in April 2026. The year-on-year increase suggests that investor interest in equity mutual funds remained firm compared with the same period last year. This matters because monthly flow numbers can swing due to market moves, new fund launches, and portfolio rebalancing. A year-on-year comparison helps smooth out some of those short-term effects.

March 2026 context: record MF buying amid a sharp market fall

The sequential decline in April came after a notable March, when equity mutual funds recorded net inflows of ₹40,450 crore. March 2026 also stood out because the Nifty 50 fell 9.37% (close to close), its steepest monthly decline since March 2020, according to the provided data. The same March dataset noted that domestic mutual funds made a record monthly equity purchase of approximately ₹1.05 lakh crore (₹105,000 crore, provisional). That domestic buying partially offset record foreign selling during the month.

AUM fell in March, but the data points to market impact

The March 2026 AMFI summary highlighted two headline figures: net AUM fell by ₹8.3 lakh crore (₹830,000 crore) and total net flows were negative by ₹2.4 lakh crore (₹240,000 crore). The explanation provided was that the AUM decline was entirely mark-to-market, linked to the market fall rather than investor redemptions. In other words, asset values fell with prices, even while equity schemes saw positive net inflows. This distinction is important when interpreting industry AUM changes during volatile months.

Equity inflow streak extended in March

March 2026 marked the 61st consecutive month of net positive inflows into equity mutual funds, with the streak dating back to March 2021. The dataset noted that the inflow streak held through major episodes of foreign portfolio investor (FPI) outflows, including October 2024 and March 2026. In March 2026, FPI equity flow was reported at −₹1,17,775 crore (sell), compared with +₹22,615 crore (buy) in February 2026. This contrast underlines how domestic flows and SIP-led allocations can cushion the impact of foreign selling on local markets.

SIP contributions hit an all-time high in March

Systematic investment plan (SIP) collections were reported at an all-time high of ₹32,807 crore in March 2026, up from ₹29,845 crore in February 2026. The rise in SIP collections coincided with the sharp market decline during the month. The March narrative in the provided material framed this as investors stepping up allocations into equity schemes despite volatility. It also aligned with the idea that some investors treated the correction as an opportunity to add rather than exit.

Key AMFI metrics from March 2026

The March snapshot also showed an increase in total folios and highlighted the broader scale of the industry. Net AUM in March 2026 was reported at ₹73,73,377 crore, down from ₹82,02,956 crore in February 2026. Average AUM (AAUM) was ₹79,46,028 crore in March versus ₹83,42,617 crore in February. Total folios rose to 27.39 crore in March from 27.05 crore in February, while net folios added were +33.63 lakh in March compared with +42.58 lakh in February. Equity net inflow remained positive at ₹40,450 crore in March, up from ₹25,978 crore in February.

Summary table: April equity flows vs March, and YoY

Summary table: March 2026 industry indicators (AMFI)

Market impact and why April’s mix matters

The April month-on-month dip indicates that equity inflows can cool after a high-activity month like March, especially following a sharp market move. At the same time, the year-on-year rise suggests that the underlying participation trend remained intact. The March data also shows why AUM and flows should not be read interchangeably during market corrections, since mark-to-market changes can dominate AUM movements. With record SIP collections in March and a still-large April equity inflow figure, the dataset points to continued retail-led engagement. The mention of a recovery in debt and hybrid funds in April, even without specific values in the provided details, also indicates that asset allocation may have broadened beyond equities.

Conclusion

Equity mutual fund inflows fell 5% to ₹38,440 crore in April 2026 from ₹40,450 crore in March, but were still up 58% from April 2025’s ₹24,269 crore. The sequential decline follows a March marked by a 9.37% fall in the Nifty 50, record SIP collections of ₹32,807 crore, and record domestic mutual fund equity purchases of about ₹105,000 crore (provisional). The next AMFI release will help clarify whether April’s moderation in equity flows was a one-month pause or part of a broader trend.