Mutual fund inflows over 1 year: Which equity, debt and hybrid categories attracted money despite being in the red?
Mutual fund investors did not always put their money into categories that delivered the highest returns. In some categories, investors continued to add money despite negative returns, while others saw outflows even though they delivered positive returns.
Data for the 12 months ended August 2026 shows a mixed trend in net inflows across equity, debt and hybrid mutual fund categories, according to the latest Franklin Templeton India Mutual Fund report.
Some categories attracted substantial inflows alongside positive returns; several others recorded outflows despite being in the green.
Here is a look at the mutual fund categories that saw the highest inflows and outflows over the last 1 year, and how their category-average returns compare.
Which equity fund categories saw the highest inflows and outflows?
| Equity fund category | Total net inflows (Aug 2025–Aug 2026, ₹ crore) | 1-year category-average return (%) |
| Flexi Cap Fund | 89,087 | 1.49 |
| Small Cap Fund | 62,331 | 10.53 |
| Mid Cap Fund | 61,016 | 6.66 |
| Large & Mid Cap Fund | 46,594 | 1.35 |
| Multi Cap Fund | 33,815 | 4.83 |
| Large Cap Fund | 17,329 | -2.25 |
| Focused Fund | 15,105 | 2.18 |
| Value Fund / Contra Fund | 12,542 | 1.46 |
| Dividend Yield Fund | -1,339 | 0.11 |
| ELSS – Tax Saver Fund | -7,832 | -1.21 |
*Source: Franklin Templeton India Mutual Fund Report for net inflows; Value Research for category-average returns as of 23 September 2026.
Flexi-cap funds recorded the highest total inflows among equity categories at ₹89,087 crore in the 12 months to August 2026. Small-cap funds and mid-cap funds followed with inflows of ₹62,331 crore and ₹61,016 crore, respectively.
However, small-cap funds delivered the highest category-average return among the equity categories at 10.53%, followed by mid-cap funds at 6.66%.
The flow-return trend was not uniform. Large-cap funds attracted ₹17,329 crore despite delivering a negative category-average return of 2.25%. In contrast, dividend yield funds saw an outflow of ₹1,339 crore even though they posted a positive return of 0.11%.
ELSS funds recorded the largest outflow at ₹7,832 crore and also had a negative one-year category-average return of 1.21%.
Which debt fund categories saw inflows despite outflows elsewhere?
| Debt fund category | Total net inflows (Aug 2025–Aug 2026, ₹ crore) | 1-year category-average return (%) |
| Liquid Fund | 1,48,876 | 5.98 |
| Credit Risk Fund | 557 | 7.90 |
| 10-year Constant Maturity Gilt Fund | -1,108 | 2.55 |
| Overnight Fund | -1,920 | 5.12 |
| Medium Term Fund | -1,927 | 5.34 |
| Medium to Long Term Fund | -2,118 | 3.86 |
| Floating Interest Rates Fund | -2,582 | 5.88 |
| Dynamic Term Fund | -8,434 | 3.77 |
| Long Term Fund | -8,890 | 2.44 |
| Banking and PSU Debt Fund | -12,785 | 4.84 |
| Gilt Fund | -12,892 | 3.12 |
| Ultra Short Term Fund | -13,128 | 6.16 |
| Money Market Fund | -21,250 | 6.21 |
| Ultra Short to Short Term Fund | -37,393 | 5.83 |
| Short Term Fund | -39,262 | 4.80 |
| Corporate Bond Fund | -43,629 | 4.84 |
*Source: Franklin Templeton India Mutual Fund Report for net inflows; Value Research for category-average returns as of 23 September 2026.
Debt funds saw a stark divergence between total inflows and returns. Liquid funds attracted the highest inflows at ₹1.49 lakh crore, with a category-average one-year return of 5.98%.
Credit-risk funds were the only other debt category in the table to record a net inflow, at ₹557 crore. They also delivered the highest one-year category-average return at 7.90%.
All other listed debt categories recorded net outflows despite posting positive one-year returns. Corporate bond funds saw the highest outflow at ₹43,629 crore, followed by short-term funds at ₹39,262 crore.
Long-term funds recorded the lowest one-year return among these categories at 2.44%, despite an outflow of ₹8,890 crore.
Which hybrid fund categories attracted the most money?
| Hybrid fund category | Total net inflows (Aug 2025–Aug 2026, ₹ crore) | 1-year category-average return (%) |
| Multi Asset Allocation | 68,519 | 7.42 |
| Arbitrage Fund | 27,188 | 6.00 |
| Balanced Hybrid Fund/Aggressive Hybrid Fund | 19,554 | 1.23 |
| Dynamic Asset Allocation/Balanced Advantage | 9,842 | 0.78 |
| Equity Savings | 1,584 | 3.36 |
| Conservative Hybrid Fund | -723 | 1.72 |
*Source: Franklin Templeton India Mutual Fund Report for net inflows; Value Research for category-average returns as of 23 September 2026.
Multi-asset allocation funds led hybrid categories in both flows and returns, attracting ₹68,519 crore in the past 12 months and delivering a category-average return of 7.42%.
Conservative hybrid funds were the only hybrid category in the table to record an outflow, at ₹723 crore, despite delivering a positive one-year return of 1.72%.
The 12-month flow data shows that investor allocations did not always move in line with category returns.
Equity and hybrid categories largely attracted inflows, while debt funds saw widespread outflows despite positive returns across categories. In equity funds, some categories also attracted money despite negative returns, highlighting the divergence between recent performance and investor flows.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.
