In a noteworthy start to the calendar year, equity mutual fund inflows in India dropped by 14% month-on-month, falling to ₹24,028 crore in January 2026. Data released by the Association of Mutual Funds in India (AMFI) on February 10, 2026, indicates that while retail commitment remains high, market volatility and valuation concerns have tempered fresh equity investments.
Despite the dip in equity, the overall industry saw a massive rebound in total net inflows, hitting ₹1.56 lakh crore, largely due to investors returning to debt and gold.
Equity Mutual Funds: A Deep Dive into January Data
The 14% decline (from ₹28,054 crore in December 2025) marks the second consecutive month of cooling in the equity segment.
Winners vs. Losers by Category
While the headline number was down, certain categories bucked the trend while others saw significant profit-booking.
| Category | Jan 2026 Inflow (₹ Cr) | Change (MoM) |
| Flexi Cap Funds | ₹7,672 | -23.4% (Still the top category) |
| Focused Funds | ₹1,556 | +47% |
| Large Cap Funds | ₹2,005 | +28% |
| Mid Cap Funds | ₹3,185 | -24% |
| Small Cap Funds | ₹2,942 | -23% |
| ELSS (Tax Saving) | (₹593) | Net Outflow |
The Rise of “Safe Havens”: Debt & Gold
The standout story for January 2026 was the rotation of capital into less volatile asset classes.
1. Debt Funds Rebound
After two months of heavy outflows (totaling ₹1.58 lakh crore), debt funds saw a sharp reversal with ₹74,827 crore in net inflows. This was led by Overnight Funds (₹46,280 crore) and Liquid Funds (₹30,681 crore), as corporates and institutions redeployed cash at the start of the new quarter.
2. The Gold Rush
Gold ETFs saw an unprecedented surge, matching equity inflows for the first time. Inflows doubled to ₹24,039 crore, a 106% jump from December. Investors clearly pivoted toward gold as a hedge against geopolitical tensions and global trade uncertainty (specifically the “US tariff concerns” mentioned by AMFI).
SIP Resilience: The Retail Backbone
Despite the market’s “risk-off” mood, the Systematic Investment Plan (SIP) ecosystem remains the industry’s bedrock:
- Monthly SIP Contribution: Remained steady at a record ₹31,002 crore.
- Total SIP Accounts: Crossed the 10.29 crore mark.
- Stoppage Ratio: Improved to 74% (down from 85%), meaning more people are continuing their investments rather than pausing them.
Expert Perspective: Why the Moderation?
AMFI Chief Executive Venkat Chalasani attributed the moderation to “extreme volatility” triggered by global headwinds, including new US trade tariffs. Analysts also point to valuation concerns in mid-cap and small-cap segments, leading investors to favor large-cap or multi-asset strategies.
Summary of Assets
As of January 31, 2026:
- Total Industry AUM: ₹80.76 lakh crore (Up 1% MoM).
- Equity AUM: ₹34.86 lakh crore.
- Debt AUM: ₹18.90 lakh crore.
