February 2026 Mutual Fund Flows: Equity, Debt & SIP Trends

MUTUAL FUND FLOWS FEBRUARY 2026 – RAPID FIRE

In February 2026, open-ended mutual funds saw net inflows of ₹94,194 Crore across categories. Here is a quick look at the key flow narratives.

1. Debt funds saw net inflows of ₹42,106 Crore dominated by inflows at the short end of the yield curve; specifically, liquid funds and money market funds.
2. Equity Fund inflows picked up to ₹25,978 Crore. Flows were led by Flexi Cap Funds, Mid-Cap Funds, Small Cap Funds, and Large & Mid-Cap Funds.
3. Hybrid funds saw net inflows of ₹12,230 Crore, while passive funds saw inflows taper sharply to ₹13,879 Crore for February 2026, as flows into gold and silver ETFs sobered amidst the volatility in global precious metal prices.

The NFOs picked up in February 2026 at ₹4,979 Crore, while gross SIP flows in February 2026 were sharply lower at ₹29,845 Crore, on short-month effect.

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)

For the second month in a row, debt funds dominated the flow swing. The overall significance of flows as a percentage of the net AUM at 2.17%, 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 debt funds.

ACTIVE DEBT FUNDS: FLOW DOMINANCE ON THE NEGATIVE SIDE

In the case of debt funds in February 2026, out of the 16 fund categories, 11 categories saw net outflows while only 5 categories saw net inflows. In terms of the five most significant flow categories, 4 out of the 5 categories, were on the negative side, a repeat of Jan-26.

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 (Overnight funds, Long Duration funds, Ultra Short Duration funds, and Medium to Long Duration Funds). In fact, 2 out of 5 categories were funds at the long end of the yield curve; and they were in the negative. However, the intensity of flows into liquid funds more than made up for these negative jitters.

ACTIVE EQUITY FUNDS: ALLOCATION PLUS ALPHA THE BIG PICTURE

In the case of equity funds in February 2026, out of the 11 fund categories, 10 categories saw net inflows while only ELSS seeing outflows. 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. At the same time; Small Cap Funds and Mid-Cap funds are about generating alpha by taking the risk of portfolio concentration. One broad trend has been the reduced investor interest in thematic funds and more towards cap-based alpha.

HYBRID ALLOCATION FUNDS: MULTI ASSET ALLOCATION RULES THE ROOST

In the case of hybrid funds in February 2026; out of the 8 hybrid categories, 7 saw positive flows with only Conservative Hybrid Funds seeing net outflows. The 5 most significant flow categories had 4 in the positive and 1 in the negative.

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 3 out of 5 cases is about strategic asset allocation. Essentially, MAAFs, Children’s Fund, and BAFs are about multi-asset allocation. Aggressive Hybrids are more about alpha hunting, while conservative hybrids are about risk-off investing.

PASSIVE FUNDS: GOLD STILL SHINES, BUT NOT SO MUCH

In the case of passive funds in February 2026, all the 4 fund categories 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, but the margin is anything but stunning, unlike last month. After the euphoria of gold and silver last month, February saw a return of good old index funds and index ETFs. Interesting, even global indices as an asset class are rapidly coming of age.

In the case of debt funds, the undertone continues to be very negative. In the remaining cases, the broad undertone is still positive.