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Domestic MF flows: Inflows in March at record high

ICICIdirect Research 10 Apr 2026 DISCLAIMER

Ex-NFOs, inflows during the month of March came in at all-time high at Rs 38500 crore, a sharp jump from Rs 22000 crore in February. Total Inflows (including NFOs) in the month of March was at Rs 40500 crore (second highest after July 2025 at Rs 42700) as compared to Rs 26000 crore in February 2026.
FY26 inflows stands at Rs 3.46 lakh crore as compared to Rs 4.17 lakh crore in FY25. (FY24: Rs 1.8 lakh crore and FY13 was 1.5 lakh crore).
The trend of higher inflows into midcap and smallcap continues with average inflows at Rs 6000 crore as compared to the run-rate of Rs 4000 crore in previous months. Flexicap category saw more than Rs 10000 crore of inflows.
ETF also witnessed highest ever inflows at Rs 19800 crore in March as against Rs 4500 crore in February. Seems like largecap investing is being preferred through ETFs while Midcap/smallcap investing is preferred through mutual funds.
The month of March was the real test of retail behaviour as markets witnessed a double-digit decline and were extremely volatile amidst heightened negative news flow. The debate now should settle down and we can reasonably say that domestic inflows are structural.
Sharp rise in Gross inflows by Rs 24000 crore indicating new lumpsum money came-in during March-month market decline.
SIP inflows also came in at record high Rs 32087 crore as compared to Rs 29845 in February.
Gold ETFs inflows further declined sharply at Rs 2266 crore as compared to Rs 5200 crore in February and Rs 24000 crore in January.

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