Equity schemes saw inflows in August but smallcap and sectoral funds slowed down

Net inflows into equity funds slow down, but remain in the positive territory

Equity mutual funds maintained positive inflow in August 2025 though investor preferences have shifted compared with July, AMFI data has shownm as large, flexi and midcap schemes held steady while smallcap and sectoral funds saw a clear slowdown.

Largecap funds attracted Rs 2,835 crore in net inflow, up from Rs 2,125 crore in July and broadly in line with August 2024. Flexicap schemes too remained steady with Rs 7,679 crore worth of addition, unchanged compared to prior month and more than double the Rs 3,513 crore recorded in August 2024. Midcap schemes continued their strong run with Rs 5,331 crore as inflow in August, a shade above July and significantly higher than August 2024.

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The picture was more moderate in other categories. Large and midcap funds brought in Rs 3,326 crore, lower than the Rs 5,035 crore inflow in July but comparable with year-ago levels. Inflow into smallcap funds, which had surged in July, slowed to Rs 4,993 crore in August, though this was still comfortably higher than the Rs 3,209 crore mobilised last year.

Thematic schemes presented mixed outcomes, with sectoral funds down to Rs 3,893 crore in August after Rs 9,426 crore inflow in July, and well below the Rs 18,117 crore seen a year earlier. Dividend yield funds saw a small outflow, while value/contra funds added just over Rs 1,100 crore, less than both July and last August’s figure. Focused funds stayed modestly positive, while ELSS turned slightly green with Rs 59 crore inflow, reversing the outflow of previous two months.

Also Read: Hybrid funds remain in favour in August, though momentum slows

The overall equity AUM reached nearly Rs 33 lakh crore, up from Rs 29.2 lakh crore in August 2024, as flows were supported by steady SIP contributions but the moderation in smallcap and thematic funds underscored a more cautious tone after recent exuberance.