Small-Cap and Mid-Cap Funds Lead September 2026 Equity Mutual Fund Inflows

Key Takeaways

• Small-cap mutual funds attracted ₹9,038.57 crore in September 2026, up approximately 13.4% from August.
• Mid-cap fund inflows increased by approximately 12.1% to ₹7,834.84 crore during the same period.
• Large-cap funds returned to positive net inflows, collecting ₹859.47 crore after recording withdrawals in August.

Small-Cap Funds Record Highest Inflows Among Major Equity Categories

Small-cap mutual funds attracted ₹9,038.57 crore in net investments during September 2026, the highest among the major diversified equity categories covered by the latest AMFI data.

Inflows increased from ₹7,973.33 crore in August, representing a gain of ₹1,065.24 crore.

The September collection was approximately 13.4% higher than the previous month's figure.

The Economic Times reported that small-cap schemes led equity inflows for the third consecutive month.

The data highlights the scale of new subscriptions into schemes primarily investing in smaller listed companies.

Mid-Cap Funds Also Report Higher Collections

Mid-cap mutual funds received net inflows of ₹7,834.84 crore in September, compared with ₹6,989.40 crore in August.

The increase of ₹845.44 crore represented approximately 12.1% month-on-month growth.

Together, small-cap and mid-cap funds recorded net inflows of ₹16,873.41 crore.

That represented approximately 44% of the ₹38,306.55 crore in total net equity-oriented mutual fund inflows during September.

The concentration of inflows in these two categories indicates their importance to overall equity fund subscription activity during the month.

However, net inflows do not measure the investment returns generated by the schemes.

Large-Cap and Sectoral Funds Return to Positive Flows

Large-cap mutual funds recorded net inflows of ₹859.47 crore during September.

This followed net withdrawals of ₹1,147.36 crore in August, indicating a reversal in monthly flow direction.

Sectoral funds also moved from outflows to inflows, attracting ₹1,840.02 crore compared with withdrawals of ₹53.19 crore in the preceding month.

Thematic schemes received ₹1,800.07 crore, slightly above the ₹1,766.19 crore recorded in August.

These category-level movements contributed to the broader increase in equity mutual fund inflows.

What the Category Data Shows

AMFI's September figures provide a breakdown of where net equity mutual fund investments were concentrated.

Small-cap and mid-cap schemes accounted for a considerable portion of new net equity flows, while several other categories also recorded improvements.

The figures do not indicate that any category generated higher returns during September.

Small-cap and mid-cap portfolios can also carry different liquidity and volatility characteristics from large-cap portfolios because of the underlying companies in which they invest.

The latest data is therefore a record of investor transactions across fund categories, rather than a measure of relative investment performance.