February 2026 Mutual Fund Flows: Debt & Equity Inflows Rise
February 2026 mutual fund flows hit ₹94,530 crore with strong inflows in debt, equity and hybrid funds. See SIP trends, AUM growth and sector insights.
FEBRUARY 2026 MF FLOWS – MACRO PICTURE
February 2026 saw overall net inflows of ₹94,530 crore into mutual funds, with positive flows across all categories. While active debt funds attracted inflows of ₹42,106 crore, active equity funds got net inflows of ₹25,978 crore. In addition, hybrid funds saw net inflows of ₹12,230 crore and passive funds saw net inflows of a more subdued ₹13,879 crore as gold and silver fund inflows abated.
As of end February 2026, the total AUM of mutual funds stood at ₹82.03 trillion. What about the major sources of flows? NFO flows in February stood at ₹4,979 Crore, while the gross SIP inflows in February 2026 tapered to ₹29,845 crore.
POSITIVE INFLOWS ACROSS THE BOARD
Here is a look at monthly flows across fund categories in last 13 months.
| Month | Debt Fund Flows (₹ Crore) | Equity Fund Flows (₹ Crore) | Hybrid Fund Flows (₹ Crore) | Passive Fund Flows (₹ Crore) | Total MF Flows (₹ Crore) |
|---|---|---|---|---|---|
| Feb-25 | (6,526) | 29,303 | 7,050 | 10,249 | 40,063 |
| Mar-25 | (2,02,663) | 25,082 | (705) | 14,149 | (1,64,435) |
| Apr-25 | 2,19,136 | 24,269 | 14,248 | 20,229 | 2,76,827 |
| May-25 | (15,909) | 19,013 | 20,942 | 5,526 | 29,108 |
| Jun-25 | (1,711) | 23,587 | 23,429 | 3,997 | 49,095 |
| Jul-25 | 1,06,801 | 42,702 | 21,162 | 8,259 | 1,78,794 |
| Aug-25 | (7,980) | 33,430 | 15,614 | 11,437 | 52,443 |
| Sep-25 | (1,01,977) | 30,422 | 9,683 | 19,057 | (43,146) |
| Oct-25 | 1,59,958 | 24,690 | 14,417 | 16,668 | 2,15,657 |
| Nov-25 | (25,693) | 29,911 | 13,619 | 15,385 | 32,755 |
| Dec-25 | (1,32,410) | 28,054 | 11,101 | 26,723 | (66,591) |
| Jan-26 | 74,827 | 24,029 | 17,698 | 39,955 | 1,56,459 |
| Feb-26 | 42,106 | 25,978 | 12,230 | 13,879 | 94,530 |
Data Source: AMFI (negative figures in brackets)
February 2026 saw positive net inflows across the board, including debt funds, equity funds, hybrid funds, and passive funds. Of course, the inflows into passive funds came down sharply compared to January, but that was more due to the inflows into gold ETFs and silver ETFs tapering in February amidst the extreme volatility in the global precious metals market.
On the debt fund flows, the action continues to be concentrated at the short end of the yield curve. Interestingly, there seems to be equity interest building up in mid-caps and small caps, as evidenced by the flows during the current month. Lower flows overall could also be attributed to the shorter month of February as well as the geopolitical uncertainty that is playing out in West Asia and the Middle East. That has made investors wary.
ACTIVE DEBT FUNDS: BUYING RESTRICTED TO SHORT END
The month of February 2026 saw net active debt fund inflows of ₹42,106 Crore, the second consecutive month of net inflows. Liquid funds dominated debt fund inflows at ₹59,077 crore; followed by Money Market Funds ₹6,267 crore and Low Duration Funds ₹2,329 crore. Other inflows were very marginal in the overall scheme of things.
What about the outflows? Overnight Funds saw net outflows of ₹14,006 crore. Other categories of debt funds that saw meaningful outflows included Ultra Short Duration Funds ₹4,374 crore, Corporate Bond Funds ₹2,302 crore, Short Duration Funds ₹1,917 crore and Banking & PSU Funds ₹1,473 crore. Other outflows were not too meaningful.
ACTIVE EQUITY FUNDS: INTEREST SHIFTING TO ALPHA HUNTING
The month of February 2026 saw robust inflows into equity funds. The inflows were led by were Flexi-Cap Funds ₹6,925 Crore, Mid-Cap Funds ₹4,003 Crore, Small Cap Funds ₹3,881 Crore, Large & Mid Cap Funds ₹3,138 Crore, and Sectoral / Thematic Funds ₹2,987 Crore. Till the previous month, the focus was more on allocation across cap classes. However, this month, the focus appears to be shifting towards alpha with mid-cap funds and small cap funds attracting a lot of buying attention. This could have been driven by the sharp correction in the markets in recent weeks due to the ongoing geopolitical uncertainty.
HYBRID FLOWS AND PASSIVE FLOWS TAPER OVER JANUARY
Let us look at the hybrid fund flows first. Hybrid fund net inflows were robust at ₹12,230 Crore in February 2026 (including solution funds). Net inflows were dominated by Multi Asset Allocation Funds (MAAF) at ₹8,476 Crore, Dynamic Asset Allocation Funds (BAF) at ₹1,522 Crore, and Balanced Hybrid Funds ₹1,419 Crore. Only conservative hybrid funds saw net outflows in the month, albeit marginal.
In the passive category; inflows were again dominated by Gold ETFs at ₹5,255 Crore; but sharply lower than the previous month. Silver ETFs actually dipped into negative. Other big inflows were into Index ETFs ₹4,487 Crore, Index Funds at ₹3,233 Crore, and Global FOFs at ₹904 Crore. With the frenetic rally behind them, the consumer appetite for gold and silver ETFs appears to be waning, and rightly so.
The broad theme for February saw equity interest shift to alpha hunting in smaller cap stocks. Of course, allocation continues to be the rage. Debt fund inflows are still concentrated at the short end of the curve. For hybrid funds, the inflows continue to be dominated by MAAFs, thanks to the bumper returns generated by gold and silver. March may be more normalized flows after the shortened month of February 2026.
Want help choosing funds that suit your goals?
Start with Tick FundsDisclaimer: Mutual fund investments are subject to market risks; read all scheme-related documents carefully. SERNET is an AMFI-registered mutual fund distributor and receives commission from fund houses.
Was this article helpful?