Even as overall equity mutual fund inflows moderated in April 2026, flexi cap funds continued to dominate investor preference, attracting more than Rs 10,000 crore for the second consecutive month and emerging as the top-performing equity mutual fund category.
According to AMFI data released on Monday, flexi cap funds saw net inflows of Rs 10,147.85 crore in April 2026, slightly higher than Rs 10,054.12 crore in March.
This comes even as total equity mutual fund inflows fell nearly 5% month-on-month to Rs 38,440.20 crore in April, compared with Rs 40,450.26 crore in March, indicating that investors continued to favour diversified investment strategies despite broader moderation in inflows.
Flexi cap funds lead equity categories by AUM
Flexi cap funds are not just leading in monthly inflows—they have also emerged as the biggest equity mutual fund category by assets.
The category’s net assets under management (AUM) rose to Rs 5,59,366.31 crore in April, making it the largest among all equity fund categories.
In fact, across mutual fund categories overall, flexi cap funds are second only to liquid funds, which had an AUM of Rs 6,35,970.69 crore in April.
This highlights the scale at which investors are using flexi cap schemes as a core long-term allocation vehicle.
Why are investors choosing flexi cap funds?
Flexi cap funds offer fund managers the freedom to move investments across large-cap, mid-cap and small-cap stocks without rigid allocation limits.
That flexibility may be appealing at a time when markets remain volatile and investors are looking for diversification instead of making concentrated sectoral or stock-specific bets. The April numbers seem to reflect exactly that trend.
According to Nitin Agrawal, CEO, Mutual Funds, InCred Money, “Flexi Cap retains its dominant position with net inflows of Rs 10,147 crore… The message here is consistent with what the data has been signalling for several months. In an environment where valuation dispersion across market caps is meaningful and earnings visibility varies, investors continue to reward mandates that give fund managers the latitude to navigate freely across the cap curve.”
How other equity mutual fund categories performed in April
While flexi cap funds held steady, performance across other equity categories was mixed.
Small cap funds
April inflows: Rs 6,885.90 crore
March inflows: Rs 6,263.56 crore
Small cap funds continued to attract strong investor interest, with inflows rising nearly 10%.
Mid cap funds
April: Rs 6,551.40 crore
March: Rs 6,063.53 crore
Mid cap funds also saw healthy gains, showing risk appetite remains intact.
Multi cap funds
April: Rs 3,806.01 crore
March: Rs 2,981.55 crore
Multi cap funds posted one of the strongest gains among equity categories.
Categories where inflows weakened
Several equity categories saw softer investor participation.
Large & mid cap funds
Fell to Rs 4,490.49 crore
from Rs 5,307.25 crore
Large cap funds
Fell to Rs 2,524.61 crore from Rs 2,997.84 crore
Value/contra funds
Declined to Rs 1,478.08 crore from Rs 2,155.55 crore
Focused funds
Fell sharply to Rs 1,194.80 crore from Rs 2,424.59 crore. This was the steepest decline among equity categories.
Sectoral/thematic funds
April inflows: Rs 1,949.36 crore
March inflows: Rs 2,698.82 crore
This suggests some cooling in investor appetite for concentrated thematic bets.
ELSS remains under pressure
Tax-saving ELSS funds continued to witness outflows.
April outflow: Rs 567.73 crore
March outflow: Rs 437.34 crore
This could partly be due to seasonal post-tax filing behaviour.
What the numbers suggest
The April data suggests investors are still deploying money into equities, but are becoming more selective.
Instead of aggressive thematic or concentrated strategies, flows appear to be moving toward diversified categories where fund managers have greater flexibility to navigate market conditions.
That may explain why flexi cap funds not only maintained inflows above the Rs 10,000 crore mark but also retained their leadership position despite an overall slowdown in equity fund inflows.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.