Parag Parikh and HDFC Flexi Cap Funds Lead in Monthly Equity Inflows

Market Correction Sees Surge in Equity Mutual Fund Inflows

Retail investors have poured money into a select group of equity mutual fund schemes during the March-April 2026 market correction, with flexi-cap funds continuing to be the biggest beneficiaries of the latest inflow surge.

Among individual schemes, Parag Parikh Flexi Cap Fund topped the inflow charts with Rs 7,549 crore of inflows during March-April 2026, accounting for 10% of cumulative flows among the top-35 schemes. HDFC Flexi Cap Fund followed with Rs 5,473 crore, or 7% of total flows, while Bandhan Small Cap Fund received Rs 3,416 crore, accounting for 4.6%. HDFC Mid Cap Fund attracted Rs 3,072 crore during the period, contributing 4.1% of cumulative top-35 inflows.

Read also: Groww AMC Secures Strategic Boost as SEBI Approves State Street Global Advisors' Minority Stake

Among small-cap schemes, Nippon Small Cap Fund recorded inflows of Rs 1,484 crore, HDFC Small Cap Fund drew Rs 1,295 crore and Invesco India Smallcap Fund received Rs 1,055 crore.

Inflows remained concentrated among a handful of schemes, with the top-35 funds accounting for nearly 77% of cumulative inflows during the correction cycle, the report shows.

Return data showed investors continued to favour schemes with relatively strong long-term performance. HDFC Mid Cap Fund, Kotak Midcap Fund, and Nippon India Growth Mid Cap Fund delivered three-year CAGR returns of more than 23%, among the strongest in the broader market category.

Read also: Mahindra Manulife Launches MPOWER SIF, Entering the Systematic Investment Fund Segment

Among flexi-cap schemes, HDFC Flexi Cap Fund delivered a three-year CAGR return of about 14.6%, while Parag Parikh Flexi Cap Fund posted returns in a similar range. SBI Contra Fund delivered a five-year CAGR return of 17.7%, while Kotak Contra Fund generated a three-year CAGR return of 17.6%.

Other major beneficiaries of the latest inflow cycle included Kotak Multicap Fund with inflows of Rs 1,890 crore, Nippon India Multi Cap Fund at Rs 1,856 crore, ICICI Prudential India Opportunities Fund at Rs 1,842 crore and ICICI Prudential Value Fund at Rs 1,812 crore.

According to Elara Securities, persistent domestic liquidity has cushioned market corrections over the past few years, preventing deeper drawdowns and helping broader markets rebound quickly after selloffs.

According to data from Elara Securities, the latest inflow surge was also stronger than earlier correction phases. During the October 2024-January 2025 correction following Donald Trump's election victory in the US, pure equity inflows averaged about Rs 27,000 crore per month. In the July 2025 correction phase, monthly inflows moderated to around Rs 22,000 crore before accelerating again during the March-April 2026 selloff.

Overall, equity mutual funds reported a 62-consecutive month positive streak in April, with inflows of Rs 38,440 crore, AMFI data showed. However, inflows declined 5 percent from Rs 40,450 crore in March. Among equity categories, flexi-cap funds led inflows at Rs 10,148 crore. Small-cap fund inflows rose 10 percent month-on-month to Rs 6,886 crore from Rs 6,264 crore in March, while mid-cap funds received Rs 6,551 crore.