January 2026 marked a pivotal reset for India’s ₹60 trillion-plus mutual fund industry. AMFI figures show total net inflows of ₹1.56 lakh crore, a stark contrast to December’s withdrawals, driven by gold’s allure and equity steadiness.
Gold ETFs exploded to ₹24,039.96 crore—doubling December’s ₹11,647 crore and claiming the month’s top spot. Active equity followed closely at ₹24,029 crore (down 14%), with flexi-caps leading at ₹7,672.36 crore.
Category insights: Large-caps ₹2,004 crore (up), mid-caps ₹3,185.47 crore (down), small-caps ₹2,942.11 crore (down), sectorals ₹1,042 crore (up 9.2%).
Debt funds reversed fortunes dramatically, inflows hitting ₹74,827.13 crore versus December’s ₹1.32 lakh crore out. Overnight funds surged to ₹46,280 crore, liquids to ₹30,681.55 crore.
Hybrids jumped to ₹17,356.02 crore, arbitrage to ₹3,293.30 crore. Twelve NFOs amassed ₹1,939 crore, SIPs clocked ₹31,002 crore reliably.
Morningstar’s Himanshu Srivastava explains: ‘Positive flows persist amid volatility, courtesy of SIP momentum and long-term equity faith. Mid/small-cap easing was countered by large-cap gains.’
Against benchmarks like July 2025’s equity peak, January underscores resilience. Investors are pivoting smartly—gold for protection, flexi-caps for flexibility, debt for yield—crafting portfolios primed for uncertainty.
This momentum bodes well, potentially setting the tone for a year of calculated risks and rewards in India’s dynamic markets.