Indian mutual funds see strong equity inflows, small-caps and gold lead August gains
In August 2026, Indian mutual funds attracted ₹29,328 crore of equity inflows, driven by small-cap, mid-cap and gold ETF purchases, while debt funds recorded a sharp outflow of ₹8,711 crore.
August 2026 marked the 66th consecutive month of net inflows into Indian equity mutual funds, with total new money of ₹29,328 crore, up almost 19% from July. Small-cap funds led the surge, attracting ₹7,973 crore, while mid-caps contributed ₹6,989 crore and flexi-caps added ₹5,059 crore. Debt funds, however, swung to net outflows of ₹8,711 crore after a massive July inflow, driven largely by withdrawals from Overnight Funds.
Gold ETFs experienced a 67% increase in inflows to ₹2,597 crore, buoyed by rising gold prices and global uncertainty. Systematic Investment Plans remained a strong pillar, with monthly contributions of ₹32,297 crore and the number of SIP accounts crossing the 10-million mark. Overall industry AUM rose 1.5% month-on-month to ₹87.08 lakh crore, reflecting continued confidence among domestic investors despite short-term market volatility.
