Domestic equity mutual funds continued to attract steady investor interest in April, with overall inflows largely unchanged on a month-on-month basis. Equity inflows (excluding exchange-traded funds) stood at Rs 427 billion during the month, marginally lower than Rs 428 billion recorded in March, Morgan Stanley said in a recent report.
A notable trend within the April data was the strong traction in flexi-cap funds, which emerged as the top category, drawing inflows of Rs 101 billion (Rs 10,100 crore). These schemes, which have the flexibility to shift allocations across large-, mid- and small-cap stocks, appear to be benefiting from investor preference for diversified exposure amid market uncertainties.
Flexi-cap funds continued to attract strong investor interest, recording inflows of around Rs 101 billion in April 2026, sharply higher compared to approximately Rs 55 billion in April 2025. The category has now topped inflow charts for nine consecutive months, with both March and April seeing inflows exceeding the Rs 100 billion mark.
Systematic Investment Plan contributions, however, saw a modest decline, coming in at Rs 311 billion compared with Rs 321 billion in March. On the other hand, non-SIP inflows edged higher to Rs 116 billion, suggesting that lump-sum investments picked up even as systematic contributions cooled slightly. Meanwhile, ETF inflows fell sharply to Rs 154 billion from Rs 280 billion in the previous month, reflecting some ebbing of passive flows, the report said.
The broader trend remains positive, with domestic equity inflows for the first four months of 2026 reaching Rs 2.15 trillion, significantly higher than Rs 1.74 trillion during the same period last year.
“In the first four months of 2026, domestic equity inflows stood at Rs 2, 146 billion (USD 23.2 bn) compared with Rs 1,742 billion (USD 20.1 bn) in the same period of 2025. Funds mobilised through equity-oriented offerings have amounted to USD 1 billion so far in 2026 versus USD 4.5 bn in C2025 and USD 12 bn in C2024,” the brokerage noted.
On the debt side, short-duration funds saw robust inflows during April, while flows into medium- and long-duration categories were relatively modest. Overall, the data suggests that while there are pockets of moderation, particularly in SIPs and ETFs, domestic investor appetite for equities remains intact, with flexi-cap funds leading the charge.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
