According to AMFI's September 2026 data released on October 12, equity mutual fund categories experienced a significant shift in investor flows during the month. Large-cap funds attracted the highest inflows of ₹859.47 crore, marking a complete reversal from August 2026 when they saw outflows of ₹1,147.36 crore. Sectoral funds attracted the highest inflows of ₹1,840.02 crore, followed by dividend yield funds at ₹179.31 crore and small-cap funds at ₹9,038.57 crore. This represents a complete reversal from August 2026, when large-cap funds saw outflows of ₹1,147.36 crore, while dividend yield and sectoral funds recorded outflows of ₹133.57 crore and ₹53.19 crore respectively.
Despite the positive inflow trends, equity fund performance remained under pressure in September 2026. Large-cap funds declined 5.83% during the month, taking their year-to-date losses to 10.18% as of October 13. Dividend yield funds fell 4.97% during the month and were down 7.13% YTD. The large-cap category remained under pressure with no scheme recording positive monthly returns, while only two schemes delivered positive YTD returns. The Nifty 50 closed at 22,620.45 on September 30, down 6.06% from 24,080.40 at the end of August, according to NSE Indices.
According to Value Research and Morningstar data, Taurus Largecap Equity Fund emerged as a standout performer with 12.26% YTD returns and 13.00% three-year returns. Other notable performers included Quant Large Cap Fund with 12.26% YTD returns and 12.83% three-year returns, WhiteOak Capital Large Cap Fund delivering 12.04% YTD returns, and Bandhan Large Cap Fund achieving 11.66% YTD returns. The large-cap category remained under pressure in September, with no scheme recording positive monthly returns, though the return of inflows suggests renewed investor confidence despite market weakness.
As reported by Value Research and Morningstar, LIC MF Dividend Yield Fund featured prominently across multiple time periods, ranking in the top five for YTD, three-year, and five-year returns. WhiteOak Capital Dividend Yield Fund led September returns with 0.54% YTD returns, though it did not feature among the top performers in other periods. Tata Dividend Yield Fund delivered strong performance with 12.84% YTD returns and 12.19% three-year returns, while ICICI Prudential Dividend Yield Fund achieved 14.23% five-year returns. The category's return to positive territory in September 2026 after outflows in July and August indicates stabilizing investor sentiment.
According to the data, Kotak Healthcare Fund led sectoral fund performance with 22.47% one-year returns, followed by HDFC Pharma and Healthcare Fund at 21.60%. SBI Healthcare Opportunities Fund delivered 17.28% five-year returns, while HDFC Transportation and Logistics Fund achieved 22.20% three-year returns. The sectoral fund category attracted the highest inflows of ₹1,840.02 crore in September 2026, demonstrating strong investor interest in specific industry themes despite broader market weakness.
