Equity mutual fund gross inflows reached ₹4.07 trillion in the first half of calendar year 2026, just shy of the record ₹4.34 trillion mobilised in H2 2024, according to reports from Business Standard. This performance makes H1 2026 only the second half-yearly period in which inflows crossed the ₹4 trillion milestone. The resilience was driven by a steady rise in systematic investment plan (SIP) contributions and strong lumpsum investments into existing schemes, which more than compensated for the sharp slowdown in new fund offer mobilisation.
NFO collections plunged dramatically to ₹7,092 crore in H1 2026 from ₹22,026 crore in H2 2025 and over ₹53,000 crore in H2 2024, as reported by Business Standard. Consequently, NFOs accounted for only 1.7 per cent of gross active equity inflows during the period, representing the lowest share in at least six years. According to MF executives, investors opted for proven schemes in diversified categories in 2026, contrasting with previous years when they bet on new launches in the thematic space. As per WhiteOak Capital Asset Management, flows have held up on an aggregate basis, but money has clearly gone into existing schemes, with most NFOs launched in 2023 and 2024 being aggressive sectoral and thematic funds that have disappointed.
Flexicap, smallcap and midcap funds attracted the bulk of net inflows in H1 2026, with these three categories together cornering nearly 60 per cent of the total H1 net inflows of ₹1.8 trillion, according to Business Standard. Aashish Somaiyaa, CEO of WhiteOak Capital Asset Management, noted that diversified flexicap, multicap and midcap funds have held up much better than aggressive sectoral and thematic funds launched in previous years. The net equity inflows stood at ₹1.8 trillion in H1 2026, 5 per cent lower than the previous six-month period. Several of these diversified funds delivered healthy positive returns over the past two years despite markets going nowhere, contrasting with the disappointing performance of thematic funds.
A sharp rise in lumpsum investments into existing schemes has been a key factor behind the resilience in equity inflows, as reported by Business Standard. An analysis of gross active equity inflows through different channels shows that estimated lumpsum inflows rose to ₹2.5 trillion in H1 2026, representing the second highest for any half-yearly period after peaking at ₹2.6 trillion in H2 2024. The lumpsum inflows are estimated by assuming that active equity schemes accounted for 80 per cent of the industry's total SIP contributions during the period.
