Equity Inflows Surge in February, Led by HDFC Flexi Cap, Kotak Midcap, and Nippon India Small Cap Funds

Equity Mutual Fund Inflows Surge in February 2026

Key Statistics:

• Rs 14,808.69 crore: Total net inflows into equity mutual fund categories in February 2026
• Rs 6,924.65 crore: Net inflows into flexi cap funds
• Rs 4,002.99 crore: Net inflows into mid cap funds
• Rs 3,881.06 crore: Net inflows into small cap funds

Equity mutual fund categories such as flexi cap, mid cap, and small cap funds attracted significant inflows in February 2026, with investors continuing to favour diversified and growth-oriented strategies despite market volatility. The Association of Mutual Funds in India (AMFI) reported that these categories received a total of Rs 14,808.69 crore in net inflows during the month.

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Flexi Cap Funds

Flexi cap funds led the charts with net inflows of Rs 6,924.65 crore in February. Among these funds, HDFC Flexi Cap Fund recorded the highest inflow, attracting Rs 3,003.76 crore during the month. Other notable inflows were seen in ICICI Prudential Flexicap Fund (Rs 756.27 crore) and Aditya Birla Sun Life Flexi Cap Fund (Rs 506.17 crore).

Cash Holdings Trends

A look at the cash holdings trend shows varying positioning among funds. Parag Parikh Flexi Cap Fund has gradually reduced its cash holdings over the past few months, from 22.17% in September 2025 to 18.08% in February 2026. In contrast, HDFC Flexi Cap Fund saw a sharp rise in cash holdings in January before trimming them again in February.

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Mid Cap Funds

Among mid cap schemes, Kotak Midcap Fund attracted the highest inflows in February at Rs 2,653.27 crore, followed by Nippon India Growth Mid Cap Fund (Rs 2,255.15 crore). Cash positions in these funds remain relatively low, indicating that much of the incoming money is being deployed into equities.

Small Cap Funds

Small cap schemes also witnessed robust investor demand during February. Nippon India Small Cap Fund recorded the highest inflow of Rs 1,829.34 crore, followed by Bandhan Small Cap Fund (Rs 1,207.59 crore). Cash holdings show differing strategies between the two top funds, with Bandhan Small Cap Fund increasing its cash allocation to 10.25% in February, while Nippon India Small Cap Fund maintained a lower cash position at 4%.