Equity mutual fund inflows rise 18%; SIP growth plateaus for third month

Net inflows into equity mutual funds rose 18% to four-month high of ₹29,328 crore in August 2026, even as investor contributions through systematic investment plans (SIPs) plateaued for the third consecutive month, according to data from the Centre for Monitoring Indian Economy (CMIE).

Mutual fund investors poured ₹24,697.3 crore into the market in July 2026, which was 15% lower than the June inflows of ₹28,973 crore. As a result, the August figures appear higher largely because they are being compared with the relatively low base recorded in July 2026.

SIP contributions stood at ₹32,297 crore during the reporting month, up just 1.5% over July 2026 level. The modest increase marks the third consecutive month in which the pace of SIP growth has plateaued, indicating a slowdown in incremental investor contributions through the route.

“Overall, the aggregate collection number does not tell the complete story. Beneath the headline flows, there appears to be a meaningful rotation of investor capital away from large-cap and some diversified strategies towards mid-cap, small-cap and select hybrid categories. The key question going forward is whether this represents a sustained structural shift in asset allocation or simply a continuation of performance-led flows into segments that have outperformed over the recent past,” said Viraj Gandhi, CEO, SAMCO Mutual Fund.

Market conditions remained challenging during the period, with elevated crude oil prices and persistent geopolitical tensions weighing on investor sentiment. Despite these headwinds, foreign institutional investors (FIIs) continued to make purchases in Indian equities during July.

“Escalating geopolitical tensions are keeping crude prices in the range of $90-$100 a barrel, and we continue to see geopolitical tensions persist this month. Despite this, we have seen FIIs continue their equity purchases, as they did last month, in July,” said Venkat Chalasani, who heads the Association of Mutual Funds in India (AMFI), during a media briefing.