Joydeep Sen’s analysis, using AMFI monthly notes, studies mutual fund category inflows and outflows between December 2025 and June 2026 (or across the last seven months, as stated). Category-wise inflow patterns matter for GS3 because they can reflect household risk appetite, preferences for diversification within a product, and the role of taxation incentives in shaping product demand.

What happened: category-wise mutual fund inflows (Dec 2025–Jun 2026)

Joydeep Sen’s analysis sets boundaries to make comparisons more consistent. The analysis excludes sectoral/thematic funds because these funds hold multiple sub-sectors and do not map cleanly onto single-strategy categories. The analysis also excludes liquid funds because liquid funds can largely reflect corporate treasury parking rather than retail investor preference.

In the remaining set of categories, the largest inflow category is Flexi Cap funds. The highest gross inflows before redemptions cited for Flexi Cap funds are ₹55,225 crore.

The next most popular category in the discussion is multi-asset allocation funds (MAFs), with gross inflows before redemptions at ₹45,453 crore. Multi-asset allocation funds are explained as single funds that hold multiple asset classes. The asset classes listed include equity, debt, global equities, gold/silver, REITs and InvITs.

The discussion also explains how multi-asset allocation funds attempt to keep allocations near targets. When actual portfolio weights drift—such as equity becoming overweight after a rally—the fund manager books profits and rebalances back toward the target allocation. Another rationale stated is that a single multi-asset structure can reduce repeated tax consequences that might arise when investors frequently switch between separate equity, debt, and commodity funds.

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