Nomura expects net equity inflows into Indian mutual funds to moderate 18% month-on-month to Rs 346 billion in October 2026, compared with Rs 423 billion in September, with mid-cap and hybrid fund categories seeing a slowdown. The brokerage estimates that the large and mid-cap category will be the biggest contributor to equity flows during the month, while small-cap flows remain relatively resilient.
The estimated October inflows would take the average monthly equity flow for FY27 so far to Rs 363 billion, compared with the FY26 monthly average of Rs 379 billion, according to Nomura's latest Net Flow Navigator report dated November 4.
Nomura's estimates cover the top 15 equity and hybrid mutual fund categories, accounting for around 99% of total equity inflows. The calculations exclude arbitrage flows to capture directional equity investments and isolate actual flows from changes in assets under management (AUM) caused by market movements.
The large and mid-cap category is expected to attract Rs 88 billion in October, accounting for 26% of total flows, led by significant inflows of around Rs 46 billion into DSP's unlisted large and mid-cap scheme, Nomura said.
Small-cap funds are estimated to attract Rs 79 billion, accounting for 23% of the total. Mid-cap fund inflows, however, are expected to decline to Rs 55 billion from Rs 78 billion in September, taking their share to 16%.