2 months ago
SIPs Sustain Equity MF Inflows Above Rs 4 Trillion
In the first half of 2026, investors in India put a lot of money into mutual funds that invest in stocks.
They chose existing funds that have done well rather than new ones.
This kept the total money flowing into these funds very high, almost reaching a record.
However, new fund offers (NFOs) saw very little money coming in, the least in six years.
Investors are now preferring funds that invest in a mix of different types of companies, like flexicap, smallcap, and midcap funds, which together got almost 60% of the total new money in these funds.
This change in investor behavior has helped keep the overall money flowing into equity funds strong, despite the drop in NFO collections.
Gross inflows into active equity mutual funds reached ₹4.07 trillion in H1 2026, the second-highest half-yearly mobilisation on record.
NFO collections slumped to a six-year low of ₹7,092 crore, contributing just 1.7% of total active equity inflows.
Steady SIP contributions and strong lumpsum investments into existing schemes offset the sharp decline in NFO fundraising.
Flexicap, smallcap, and midcap funds together attracted nearly 60% of the ₹1.8 trillion net equity inflows.
Investors shifted from thematic NFOs to diversified existing schemes with stronger and more consistent performance.
- Who
- Investors and mutual fund managers
- What
- Shift in investment preferences from NFOs to existing schemes
- Where
- India
- When
- First half of 2026
- Why
- Investors prefer diversified existing schemes with stronger performance over new thematic NFOs
Investors Prefer Existing Schemes
NFOs Lose Appeal
Investor Behavior Shift
Investors Prefer Existing Schemes
Investors are shifting towards diversified existing schemes with stronger performance.
NFOs Lose Appeal
NFOs, especially thematic ones, have seen a significant decline in collections.
Key facts
- Gross Inflows H1 2026
- ₹4.07 trillion
- Record Inflows H2 2024
- ₹4.34 trillion
- NFO Collections H1 2026
- ₹7,092 crore
- NFO Collections H2 2025
- ₹22,026 crore
- NFO Collections H2 2024
- ₹53,000 crore
- Net Equity Inflows H1 2026
- ₹1.8 trillion
- Lumpsum Inflows H1 2026
- ₹2.5 trillion
Quotes
Aashish Somaiyaa
CEO of WhiteOak Capital Asset Management
“Flows have held up on an aggregate basis, but one can clearly see that NFOs have dried up and money has gone into existing schemes.”
rediff.com








