Mutual Fund Flows January 2026 – Rapid Fire

In January 2026, open-ended mutual funds saw net inflows of ₹1,56,508 Crore across categories. Here is a quick look at the key flow narratives.

1. Debt funds saw net inflows of ₹74,827 Crore dominated by inflows at the short end of the yield curve; mainly money market funds and liquid funds.
2. Equity Fund inflows tapered to ₹24,029 Crore. Flows were led by Flexi Cap Funds, Mid-Cap Funds, Large & Mid-Cap Funds, and Small Cap funds. 
3. Hybrid funds saw net inflows of ₹17,698 Crore, while passive funds a spike in inflows to ₹39,955 Crore for the month of January 2026, led by Gold ETFs and Silver ETFs. Gold ETFs alone got more inflows than the entire active equity category.
4. The NFOs slackened in January 2026 at ₹1,939 Crore, while gross SIP flows in January 2026 were absolutely flat at ₹31,002 Crore. 

Let us turn to flow significance as a share of net AUM. 

Mf Flow Significance On Net AUM Size – Macro Picture

When it comes to mutual fund flows; two things matter. The size of the flows and whether the swing flows were on the positive or negative side? Here is a quick macro picture. 

Data Source: AMFI (# – Only open-ended funds) 

In debt funds, swing flows were strongly on the positive side. The overall significance of flows as a percentage of the net AUM at 3.96%, may be slightly deceptive, because in the top fund categories in terms of Flow/AUM significance; 4 out of 5 are on the negative side. For the month, positive traction was about Passive funds, Hybrid funds, and Equity funds; in that order. In terms of dominance, the month belonged to passive funds.
 

Active Debt Funds: Heavily Bought, But Broadly Sold

In the case of debt funds in January 2026, out of the 16 fund categories, 10 categories saw net outflows while only 6 categories saw net inflows. In terms of the five most significant flow categories, 4 out of the 5 categories, were on the negative side. 

Data Source: AMFI 

As can be seen in the above table, the most significant flows as share of AUM were broadly on the negative side (long duration funds, corporate bond funds, overnight funds, and gilt funds). In fact, 4 out of 5 categories were funds at the long end of the yield curve; and they were all in the negative. However, the intensity of flows into liquid funds and money market funds made the overall numbers look impressive.  

Active Equity Funds: Allocation And Alpha Take The Honors

In the case of equity funds in January 2026, out of the 11 fund categories, 10 categories saw net inflows while only 1 category saw net outflows (ELSS). In terms of the 5 most significant flow categories, all were in the positive. 

Data Source: AMFI 

If you look at the 5 categories of equity funds with the most significant flow to AUM ratio, all are on the positive side. However, 2 themes emerge from the analysis. Flexi cap funds, large & mid-cap funds, and multi-cap funds are about allocation and diversification. On the other hand; Small Cap Funds and focused funds are about generating alpha by taking the risk of portfolio concentration. However, flow volumes in various equity fund categories have been waning, compared to the previous months. 

Hybrid Allocation Funds: Asset Allocation Rules The Roost

In the case of hybrid funds in January 2026; out of the 8 hybrid categories, 7 saw positive flows with only Conservative Hybrid Funds seeing net outflows. Fund flows into hybrids have stayed robust. The 5 most significant flow categories were all in the positive. 

Data Source: AMFI 

If you look at the five categories of equity funds with the most significant flow to AUM ratio, the broad theme in 4 out of 5  cases is about strategic asset allocation. Only arbitrage funds are more a competition to liquid funds. Among the others, MAAFs, Children’s Fund, and BAFs are all about multi-asset allocation. Aggressive Hybrids are more about alpha hunting. With the rally in gold and silver; multi-asset allocation has caught on in a big way. 

Passive Funds: All That Glitters Is Gold Or Silver

In the case of hybrid allocation funds in January 2026, out of the 4 fund categories, all of them saw net inflows. In terms of the most significant flow categories, here is the list. 

Data Source: AMFI 

If you look at the top categories in terms of significance of flow / AUM ratio, gold funds are at the top, by a huge margin. That is hardly a surprise. In fact, over 60% of Index ETF flows are silver ETFs. FOFs have continued to attract positive flows, as global diversification is becoming another potent theme for Indian investors. 

What is the big picture. Active and passive equity flows continue to be positive in January 2026; although longer-end debt flows are under stress. However, the big takeaway is that the action is all about gold and silver ETFs. For now, the honeymoon is going on!