Amfi Data May 2026: Inflows into equity mutual fund schemes declined for the third straight month in May 2026, falling 40.40 per cent month-on-month to Rs 22,907.77 crore from Rs 38,440.20 crore in April, according to data released by the Association of Mutual Funds in India (Amfi).
The May figure was the lowest monthly inflow into equity mutual fund schemes so far in 2026, indicating a slowdown in investor inflows after stronger participation earlier in the year.
For context, equity-oriented mutual funds had attracted net inflows of Rs 24,028.59 crore in January and Rs 25,977.91 crore in February. Inflows then accelerated to Rs 40,450.26 crore in March before easing to Rs 38,440.20 crore in April and further declining in May.
The total assets under management (AUM) for equity funds grew 1.10 per cent m-o-m to Rs 35,74,352.13 crore in May.
"The moderation in net inflows during May reflects a degree of geopolitical uncertainty and investor caution; however, we view this as a phase of healthy consolidation rather than any reversal in sentiment. Having witnessed strong inflows in recent months, a cooling-off period is both natural and constructive for the market," said Vaibhav Chugh, CEO, Abakkus Mutual Fund.
Overall, the mutual fund industry recorded a net outflow of Rs 64,021.17 crore in May, largely due to heavy redemptions from debt schemes. As a result, the industry's total AUM shrunk marginally to Rs 81.58 lakh crore.
Debt Funds See Net Outflows Of Rs 96,948 Crore
Debt mutual funds, on the other hand, saw net outflows of Rs 96,948.51 crore, a major reversal from the strong Rs 2,47,490.03 crore inflows seen in the previous month. The total AUM of the category slipped 4.65 per cent m-o-m to Rs 18,25,037.17 crore.
Within the category, liquid funds and money market funds saw the highest outflows in May at Rs 29,680.94 crore and Rs 24,691.74 crore, respectively. Overnight funds, corporate bond funds, and low duration funds came in next with outflows of Rs 15,524.77 crore, Rs 7,009.94 crore, and Rs 9,400.49 crore, respectively.
"The bulk of the redemptions came from liquid, money market, and overnight categories, instruments that move with corporate treasury cycles and tax payment schedules, not with investor sentiment. This is seasonal noise, not a structural retreat from fixed income," explained Nitin Agrawal, CEO, mutual funds, InCred Money.
Flexi-cap Funds Continue To Lead Equity MF Inflows
Among equity mutual fund categories, flexi-cap funds attracted the highest net inflows in May at Rs 5,175.54 crore. However, inflows into the category declined 49 per cent from Rs 10,147.85 crore recorded in April.
Agrawal said flexi-cap funds continue to attract investors because they give fund managers the flexibility to move across market segments at a time when leadership in the market is constantly changing.
"Flexi-cap's continued dominance is a structurally sound behaviour. In a market where cap-curve leadership is shifting and earnings delivery is being scrutinised across segments, mandates that give fund managers the freedom to navigate are proving consistently attractive. That is a lesson the retail investor base appears to have genuinely internalised."
Small-Cap Funds Continue To Attract More Inflows Than Mid-Caps
Small-cap and mid-cap funds were the next most popular categories, receiving net inflows of Rs 4,945.57 crore and Rs 4,385.06 crore, respectively. Large-cap funds also remained in positive territory, attracting Rs 1,592.93 crore inflows during the month.
May marked the third straight month in which small-cap funds drew more inflows than mid-cap funds, extending a shift that began in March. Between August 2025 and February 2026, mid-cap funds had consistently attracted higher inflows than small-cap schemes.
"The small-cap overtaking mid-cap is worth noting. It likely reflects a combination of relative value recognition after a period of compression and some recovery-driven momentum," Agrawal said. Whether investors are being driven by attractive valuations or by momentum remains unclear, he said adding, "value-driven accumulation and momentum-driven chasing look identical in the flow data but have very different implications for investor outcomes."
Multi-cap funds witnessed net inflows of Rs 2,291 crore, while sectoral and thematic funds received Rs 647.87 crore. Value and contra funds attracted Rs 509.57 crore, and focused funds saw inflows of Rs 647.87 crore.
Meanwhile, tax-saving equity-linked savings schemes (ELSS) and dividend yield funds recorded net inflows of Rs 650.78 crore and Rs 97.46 crore, respectively, in May.
This is a developing story...
