Small-Cap and Mid-Cap Funds Account for 44% of Equity Mutual Fund Inflows in September

Key Takeaways:

• Small-cap and mid-cap mutual funds received combined net inflows of ₹16,873.41 crore in September 2026. 
• Small-cap schemes registered record collections of ₹9,038.57 crore, while mid-cap funds attracted ₹7,834.84 crore. 
• The two categories accounted for approximately 44% of total equity mutual fund inflows, compared with roughly 51% in August. 

Small-Cap and Mid-Cap Schemes Dominate September Flows 

Investments in small-cap and mid-cap mutual funds accounted for approximately 44% of equity mutual fund net inflows during September 2026, according to AMFI data. 

The two categories collectively received ₹16,873.41 crore out of total equity fund inflows of ₹38,306.55 crore. 

Their combined contribution was particularly large considering that equity-oriented schemes include several other categories, such as large-cap, flexi-cap, multi-cap, focused and sectoral funds. 

Both small-cap and mid-cap schemes registered their highest monthly inflows. 

Small-Cap Funds Receive More Than ₹9,000 Crore 

Small-cap mutual funds attracted ₹9,038.57 crore during September, an increase of approximately 13.4% over August's ₹7,973.33 crore. 

The category recorded the highest inflows among equity-oriented mutual funds for the third consecutive month. 

Mid-cap mutual funds received ₹7,834.84 crore, up approximately 12.1% from ₹6,989.40 crore in August. 

Together, the two categories recorded an increase of around ₹1,911 crore over the previous month. 

Although their absolute inflows rose, their share of total equity mutual fund net inflows declined from approximately 51% in August to 44% in September. 

This reflects faster overall growth in subscriptions across other equity fund categories. 

Other Equity Categories Also Attract Capital 

Flexi-cap mutual funds received ₹6,701.80 crore, representing an increase of around 32.5% over August. 

Large-and-mid-cap funds attracted ₹4,271.22 crore, while multi-cap schemes recorded inflows of ₹3,859.55 crore. 

Large-cap mutual funds also returned to positive flows after recording withdrawals during the previous two months. 

The data indicates that September's increase in equity mutual fund investments extended beyond small-cap and mid-cap products. 

Liquidity Remains an Important Category Difference 

Small-cap and mid-cap schemes generally invest in companies with smaller market capitalisations than those held by large-cap funds. 

The underlying shares can have lower trading liquidity, particularly during periods of heavy market selling. 

This can affect how funds manage sizeable redemptions, although the September inflow figures alone do not establish that a liquidity problem occurred. 

The latest AMFI data confirms that small-cap and mid-cap funds continued receiving net subscriptions during a volatile market period. 

It does not indicate that these categories will deliver higher returns than other equity funds.