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Domestic MF Flows: Inflows moderate; SIP inflows remain strong

ICICIdirect Research 12 Jun 2026 DISCLAIMER

Inflows during the month of May came in lower at Rs 22640 crore as compared to last 2 months average of Rs 38400 crore in April & March 2026.
The 12-month average from March 2025 to February 2026 was Rs 25000 crore. So effectively, inflows are down only by around 10% from the average inflows run-rate.
Earlier also we have seen some moderation in inflows when market turns lackluster. However, as market recovers, inflows rebound. In May 2025, inflows fell to Rs 16200 crore (from 24000 crore) but rebounded to more than Rs 30000 crore in 2 months. Similarly, in October 25, inflow fell to 20000 crores from 30000 crore but rebounded back to 38000 crore in 5 months.
Inflows were lower across category but Midcap and Smallcap category continue to saw higher inflows with a run-rate of around 4500 crore. Flexicap category saw inflows of Rs 5200 crore versus Rs 10000 crore in April. Large caps continue to receive lower inflows while flows in thematic funds remain volatile.
Gold ETF witnessed outflow of Rs 620 crore, first outflows since January 2025 as compared to the run-rate of Rs 12000 crore in last 5 months. Seems like the euphoria has died down post the fall in prices. Allocation may shift back to equity funds as gold may underperform equity as well.  
Structural inflows through SIPs continued reflecting no change in investor behavior. SIP inflow sin May 2026 was at Rs 30954 crore as against Rs 31115 crore in April, came down just marginally by 161 crore.

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