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Large-cap mutual funds record a net outflow of Rs 1,321.69 crore in July, compared with a net inflow of Rs 2,067.5 crore in June.
Mutual Fund Inflows July 2026.
Net inflows into equity-oriented mutual fund schemes moderated in July 2026, with investors putting Rs 24,697 crore into the category, down from Rs 28,961 crore in June, according to data released by the Association of Mutual Funds in India (AMFI).
The latest AMFI data showed that equity mutual fund inflows declined by around 14.7% month-on-month in July. Despite the moderation, investors continued to favour mid-cap, small-cap and flexi-cap schemes, while large-cap funds witnessed a sharp reversal in flows.
Large-cap funds see first outflow since December 2023
Large-cap mutual funds recorded a net outflow of Rs 1,321.69 crore in July, compared with a net inflow of Rs 2,067.5 crore in June. According to CNBC-TV18, this marked the first monthly outflow from the category since December 2023.
The reversal represents a swing of nearly Rs 3,389 crore in monthly flows. AMFI data showed that large-cap funds mobilised Rs 4,746.09 crore during July, while redemptions stood at Rs 6,067.78 crore, resulting in the net outflow. The category had Rs 4.16 lakh crore in assets under management at the end of July.
The shift suggests that investors were relatively less inclined towards large-cap-oriented funds during the month, even as flows into several other equity categories remained strong.
Small-cap funds continue to attract strong inflows
Small-cap funds remained among the biggest beneficiaries of investor flows in July. The category attracted a net Rs 7,767.5 crore, significantly higher than the Rs 5,602 crore inflow recorded in June.
According to AMFI, small-cap funds mobilised Rs 11,882.84 crore during July, against redemptions of Rs 4,115.33 crore. Their assets under management stood at Rs 4.41 lakh crore at the end of the month.
Mid-cap funds also maintained their momentum, recording a net inflow of Rs 6,192.31 crore in July compared with Rs 6,090.2 crore in June. The category’s assets under management rose to Rs 5.23 lakh crore by the end of July.
Flexi-cap funds remain a preferred category
Flexi-cap funds recorded net inflows of Rs 4,709.08 crore in July, compared with Rs 4,709 crore in the previous month. The category had assets under management of around Rs 6 lakh crore at the end of July, making it one of the largest equity-oriented mutual fund categories by assets.
Multi-cap funds also attracted Rs 3,227.29 crore in net inflows during July, while large-and-mid-cap funds recorded inflows of Rs 3,425.34 crore. Sectoral and thematic funds saw net inflows of Rs 1,328.27 crore.
However, some equity categories saw withdrawals. ELSS funds recorded a net outflow of Rs 959.13 crore, while dividend yield funds and value/contra funds saw outflows of Rs 169.16 crore and Rs 144.61 crore, respectively.
Equity inflows moderate despite continued investor participation
The July numbers indicate that equity mutual fund investors continued to put fresh money into the market, but the distribution of flows changed significantly across market-cap categories.
While large-cap funds faced redemption pressure, investors continued to allocate substantial amounts to small-cap and mid-cap schemes. The AMFI data also showed continued interest in flexi-cap and multi-cap funds, which provide fund managers with greater flexibility to allocate across market capitalisations.
Overall, the Growth/Equity Oriented Schemes category had 573 schemes and assets under management of Rs 38.36 lakh crore as of July 31, 2026. The category recorded gross inflows of Rs 69,522.25 crore and redemptions of Rs 44,824.86 crore during the month, resulting in net inflows of Rs 24,697.39 crore.
Other key mutual fund flows in July
The AMFI data also showed strong inflows into exchange-traded funds and index-oriented products. Other ETFs recorded net inflows of Rs 9,512.05 crore, while arbitrage funds attracted Rs 6,502.44 crore. Multi-asset allocation funds saw net inflows of Rs 3,753.38 crore, while index funds received Rs 1,536.60 crore. Gold ETFs recorded net inflows of Rs 1,558.75 crore.
About the Author
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
August 11, 2026, 1:06 PM IST
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