Small-cap, mid-cap funds hit record highs in April even as passive products stumble: Amfi
The equity inflows into mutual funds moderated by 5% on a month-on-month basis to ₹38,440.20 crore, showed the latest data released by the Association of Mutual Funds in India (Amfi) on Monday, amid a significant slowdown in investments in sectoral and thematic schemes.
Investor appetite for passive funds appears to have moderated in April after strong traction in the previous month, while active funds continued to attract steady interest.
Net inflows into index funds fell 43% month-on-month to ₹4,625 crore in April, while inflows into other exchange-traded funds (ETFs) declined 45% sequentially to ₹10,754 crore, as per data from Association of Mutual Funds of India (Amfi).
On the contrary, inflows into active equity funds dipped much lower as compared to that of passive funds. Net inflows into equity mutual funds fell 5% month-on-month (MoM) to ₹38,440 crore in April.
Investors may have taken a back-seat from passive funds after the sharp move in the index in March on the back of the West Asia war. In March, the Nifty 50 index fell 11.31%.
Passive funds replicate an entire index while active funds take calls on which stocks to buy.
“ETFs witnessed weaker inflows, which could indicate that some investors who were earlier investing through passive routes, may have shifted back to active funds amid volatile market conditions,” said Jimmy Patel, managing director at Quantum Asset Management.
Total equity inflows of ₹38,440 crore are 33% above the FY2025-26 monthly average—a powerful signal that retail participation is structural, not cyclical, said Viraj Gandhi, chief executive officer of Samco Mutual Fund.
How have other equity funds fared?
Small-cap, mid-cap, multi-cap and flexi-cap schemes saw an increase in inflows while inflows in all other categories declined.
In percentage terms, inflows into focused funds tumbled the most by 51% MoM to ₹1,194.80 crore. In the value fund/contra fund category, inflows declined 31% to ₹1,478.08 crore, and in the thematic and sectoral funds, the contributions were lower by 28% to ₹1,949.36 crore.
The flexi-cap fund, meanwhile, continued to see strong inflows of ₹10,147.85 crore, an increase over ₹10,054.12 crore recorded last month. Meanwhile, the small-cap category saw a 10% increase and the mid-cap category an 8% rise to record highs of ₹6,885.90 crore and ₹6,551.40 crore, respectively.
Navneet Munot, MD and CEO of HDFC Asset Management Company said, “Against the backdrop of a challenging global environment, Indian mutual fund investors have shown commendable resilience.”
“Equity flows have held up well, reflecting the growing maturity of our investor base and the deepening awareness about the merits of systematic investing. While markets will always have to contend with geopolitical developments, the data suggests that long-term financial goals are increasingly guiding investment decisions over short-term noise,” Munot added.
About the Authors
Srushti is a markets reporter at Mint. She writes on equity markets, and her areas of coverage range from brokers and exchanges to mutual funds and the fast-evolving alternatives space, including GIFT City, from the financial capital of India. She has an experience of over three years in journalism, and has previously worked at Moneycontrol. She has an undergraduate degree in mass communication and a postgraduate diploma in business and financial journalism from Asian College of Journalism, Chennai.<br><br>Srushti prefers meeting people from the industry over making calls. Her work aims to drive impact—her story on illegal gold imports, for instance, caught the government’s attention and contributed to a policy shift. She specialises in turning complex market data into clear, engaging stories so even her grandmother could understand futures and options.<br><br>Outside of the newsroom, she enjoys spending money on jewellery and watching thriller films—especially the kind that keep her awake at night. She spends 1.5 hours a day commuting in Mumbai locals, listening to horror podcasts on her way to work. She’s also very talkative—so reach out only if you have lots of time.
Saloni Goel has over nine years of experience as a business journalist, with a strong track record of covering the financial markets. Over the course of her career, she has reported extensively on global and domestic equities, IPO market activity, commodities, and broader macroeconomic trends. Her reporting reflects a keen eye for detail, data-driven analysis, and the ability to spot emerging themes early.<br> At Mint, Saloni has been part of the markets team for nearly two years, where she currently works as Chief Content Producer. In this role, she plays a key part in shaping market coverage, driving editorial strategy, and ensuring timely, accurate, and insightful reporting across. She has been closely involved in breaking news coverage and in crafting stories that help decode the complex financial developments.<br> Before joining Mint, Saloni worked with some of India’s leading business newsrooms, including The Economic Times and Business Standard. Throughout her career, she has worn multiple hats—ranging from reporting and editing to contributing in-depth features and identifying new storytelling formats and market trends.<br> Her experience in fast-paced digital newsrooms has given her an edge in simplifying complex market concepts without losing analytical depth. Outside of work, Saloni enjoys reading books and spending time with her pet.
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