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Below the Commentary on AMFI data by Gaurav Goyal, Chief Business Officer, Canara Robeco Asset Management Company Limited

Despite heightened uncertainty and volatility, Indian equity mutual funds witnessed positive inflows in May 2026. Net inflows in active equity mutual funds moderated to approx. Rs. 22,908 crores in May 2026 on account of market volatility and geopolitical uncertainty.  While investor allocation reflected a cautious and selective approach to a few categories amid market volatility.
Flexi Cap Funds continued to emerge as the leading contributor with flows of Rs. 5,175.54 crores followed by Small cap Funds which garnered flows of Rs. 4,945.57 crores and Mid Cap Funds with flows of Rs. 4,385.06 crores. Notably, contribution of Small cap Funds and Mid Cap Funds to the overall active net equity flows increased to 40% in May 2026 from 35% contribution in April 2026.
This indicates that investors continue to look at equities as a long-term wealth creation avenue despite short-term market volatility. A long-term investment horizon remains critical to harness the full potential of wealth creation opportunities.
In the Hybrid Funds category, more than 91% of net flows were in Arbitrage Funds and Multi Asset Allocation Funds and these 2 funds categories continue to be preferred by investors.
Systematic Investment Plan (SIP) contributions remain strong at Rs. 30,954 crores marginally lower than Rs. 31,115 crores recorded in April 2026, that demonstrates continued investor commitment for long term investing through disciplined approach of investing through SIPs.
Overall, big takeaway is retail flows have remained resilient but discretionary /lumpsum flows have witnessed moderation in month of May 2026 on account of geopolitical uncertainty and market volatility.  
Investors can continue to focus on goal-based investing and maintain discipline through regular SIP contributions. Diversification can help build portfolio resilience while participating in India’s long-term growth story.  Product categories like Flexi Cap Funds, Multi Cap Funds continue to offer opportunity to investors to participate across market cap & Multi Asset Allocation Fund category provides opportunities to get exposure across asset classes and may help investors navigate market volatility.  
Rather than attempting to time the market, investors may consider staggered investments and periodic rebalancing to align portfolios with their risk appetite and financial objectives. The trend clearly indicates that investors are increasingly focusing on disciplined, long-term participation and are staying committed to India’s structural growth opportunities.

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