India’s Mutual Fund Flows – Feb 2026: Total Mutual Fund assets rise by 1.3% to Rs 82.03 (81.1) lakh crs.

March 17, 2026 (5 min read)
India’s Mutual Fund Flows – Feb 2026: Total Mutual Fund assets rise by 1.3% to Rs 82.03 (81.1) lakh crs.

Inflows in Gold ETFs see a massive jump from 11,646 crs to 24,039 crs.

Inflows in debt and Multi Asset Allocation Funds also lead to increase in assets.

Indian mutual fund industry ended February 2026 with assets of Rs 82.03 lakh crs compared to  Rs 81.01 lakh crs in January 2026. The Industry witnessed net inflows of Rs 0.94 (1.56) lakh  crs, with debt schemes showing inflows of Rs 0.42 (0.74) lakh crs and equity and hybrid  schemes showing net positive inflows of Rs 25,978 (24,028) crs and Rs 21,983 (17,356) crs  respectively. Equity schemes saw an decrease in assets to Rs 35.39 (34.87) lakh crs. This was  mainly due to positive net flows as well as positive performance of the equity markets. Nifty  500 moved up by 0.45% (+ 3.27%) but Nifty 50 also decreased by 0.51% (3.04%) with mid  caps also up by 1.79% (-3.5%) and small caps too by 0.81% (-5.5%). One year returns for all  indices are positive as markets had taken a downturn in last January. Three and five year  numbers continue to show healthy returns.

Mutual Fund Industry Overview

🔹 Monthly flow and AUM trends:

Equity Mutual Funds :

– Net flows in equity schemes increased slightly to Rs 25,978 crs from Rs 24,028 crs last  month. Though there have been no negative inflows for almost five years. Flows in NFOs  were up to 3,955 (806) crs.

– Net inflows in various categories were as under and have mostly declined compared to last  month. ELSS funds saw net outflows:

– Sectoral/Thematic Funds: Rs 2,987 (1,042) crs

– Flexi-Cap Funds: Rs 6,925 (7,672) crs

– Small-Cap Funds: Rs 3,881 (2,942) crs

Mid-Cap Funds: Rs 4,003 (3,185) crs

The net inflows have dipped below the SIP inflows of Rs 30,000 crs showing that investors are  booking profits and moving out of equity funds.

📌 #EquityFunds #MutualFunds #WealthCreation #LongTermInvestment #EquityMarket  #ELSSschemes #Equityschemes

Debt Funds: Inflows due to the beginning of the quarter

📉 Key Trends in Debt Funds:

Total debt fund AUM was Rs 19.44 (18.09) lakh crore due to higher flows and market action.

This category saw a net inflow of Rs 0.42 lakh crs compared to an inflow of 0.74 lakh crs last  month. Most debt fund categories saw outflows which were offset by an inflow of 59,000 crs  in liquid funds. This was higher than the entire inflows into equity funds.

#DebtFunds #InterestRates #BondMarket #FixedIncome #FinancialPlanning

Hybrid & Passive Funds:

– Hybrid funds’ assets were almost the same at Rs 11.13 lakh crs. Net inflows into hybrid  funds stood at Rs 11,983 (17,356) crs, led by Multi Asset Allocation funds, which saw  inflows of Rs 8,476 (10,485) crs. Inflows in these funds have been at high level maybe due  to the great performance of gold. Further, these schemes have also done better compared to  equity schemes. Arbitrage funds inflows also were at Rs 592 (3,293) crs. Again investors  are chasing returns with MAAF and Gold ETFs seeing good inflows.

– Hybrid funds have assets which are almost a third of those of equity funds. However, the  folios in this category are almost 10% of those of equity suggesting that average assets per  folio is much higher.

📌 #HybridFunds #Diversification #RiskManagement #BalancedInvestment

Passive mutual funds:

Inflows into Gold ETFs moderated to Rs 5,255 crs compared to 24,040 crs in January 2026.  Inflows in index funds were Rs 3,233 (27.3) crs and those in other ETFs were Rs 4,487  (15,005) crs.

Fund of Funds Schemes (FoFs):

FoFs collected almost Rs 3,568 (11,250) crs of net inflows.

🧐 Way forward

We are seeing a moderation in flows in equity as well as gold ETFs. If the markets keep going  down as they are doing this month, the impact of negative flows on the markets will start being  felt. Till now domestic FIs have been buyers while FIIs have been sellers. We don’t have to  imagine what can happen if the flows in mutual funds reverse.

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