Equity Mutual Fund Inflows Slip 5% in April Amid Cautious Investor Sentiment

India, May 12 — Equity oriented mutual funds recorded net investments of Rs 38,440 crore in April 2026, reflecting a decline of nearly 5 per cent compared to the previous month, according to data released by the Association of Mutual Funds in India (AMFI) on Monday.
The latest figures also showed a slight moderation in contributions through Systematic Investment Plans (SIPs). Monthly SIP inflows stood at Rs 31,115 crore in April against Rs 32,087 crore registered in March, indicating cautious investor sentiment amid fluctuating market conditions.
Despite the dip in equity investments, the mutual fund industry witnessed a strong overall recovery during the month. The sector posted a total net inflow of Rs 3.22 lakh crore in April after experiencing a net outflow of Rs 2.4 lakh crore in March. The turnaround was largely driven by robust participation in debt-oriented schemes, which attracted inflows worth nearly Rs 2.5 lakh crore.
The surge in investments pushed the mutual fund industry’s total assets under management (AUM) to Rs 81.92 lakh crore at the end of April, significantly higher than Rs 73.73 lakh crore recorded in March-end.
Within the equity category, flexi cap schemes emerged as the preferred choice among investors, garnering net inflows of Rs 10,148 crore during the month. Small-cap funds followed with investments of Rs 6,886 crore, while mid-cap schemes attracted Rs 6,551 crore. Large-cap funds also remained positive with net inflows of Rs 2,525 crore.
Market experts believe investors continued to prefer diversified and growth-oriented categories despite short-term volatility in domestic equities.
However, a few segments witnessed mild selling pressure. Dividend yield funds and Equity Linked Savings Schemes (ELSS) recorded marginal outflows during April, primarily due to profit booking and portfolio adjustments by investors.
Meanwhile, gold exchange-traded funds (ETFs) continued to witness rising demand amid global uncertainty and fluctuating equity markets. Gold ETFs received inflows of Rs 3,040 crore in April, higher than Rs 2,266 crore seen in March.
Analysts said sustained interest in gold backed investment products reflects investors’ preference for safer assets and portfolio diversification strategies during uncertain market phases.
Industry participants expect equity inflows to remain resilient in the coming months, supported by long-term retail participation through SIPs and improving domestic economic fundamentals.