AMFI Oct 2026 data: Where is investor money flowing in equity mutual funds? Inflow trends and expert SIP picks for 2027

AMFI's latest October 2026 data reveals a shift in investor allocations across equity mutual fund categories, with some witnessing a sharp rise in inflows while others saw a moderation or outflows.

But if you are planning to start a fresh SIP today and continue investing through 2027, which equity fund category should you choose? Experts share their preferred categories and the reasons behind their picks.

*Source: AMFI

Equity funds received ₹32,994 crore in October. Large & mid-cap funds led category-wise inflows, attracting ₹8,484 crore, nearly double September's ₹4,271 crore.

Ajay Kumar Yadav, CFPCM, Group CEO & CIO, Wise Finserv, said large & mid-cap funds accounted for nearly 26% of active equity inflows in October. Meanwhile, small-cap, mid-cap and flexi-cap inflows declined by 29%, 38% and 26%, respectively. This indicates a shift towards funds offering exposure to both large and mid-sized companies.

Experts favour large & mid-cap funds for investors starting fresh SIPs and continuing them through 2027.

Gaurav Garg, Head of Research, Lemonn, said these funds must invest at least 35% each in large-cap and mid-cap stocks under SEBI's allocation framework. This gives investors exposure to established companies as well as businesses with growth potential, without relying entirely on smaller companies.

Yadav also prefers large & mid-cap funds, citing relatively attractive large-cap valuations. As of October 31, 2026, the Nifty 50 traded at 17.8 times its expected earnings, below its five-year average of 20.3 times. In comparison, the Nifty Midcap 100 traded at 22.8 times, above its five-year average of 21.6 times.

However, Mohit Bagdi, Founding Partner & Head of Investment Research, MIRA Money, said investors comfortable with portfolio construction and rebalancing could take tactical one-to-two-year calls across market-cap categories such as large, mid and small-cap funds.

Ritesh Pathak, Deputy CBO, Motilal Oswal Asset Management Company, prefers flexi-cap funds, citing their flexibility to invest across large, mid and small-cap stocks and capture opportunities across market cycles. The category attracted ₹4,980 crore inflows in October.

Experts have different preferences, depending on their outlook and risk appetite.

• Manufacturing: Garg prefers manufacturing-focused thematic funds for investors with a higher risk appetite and at least a five-year horizon. Government incentives, infrastructure investment, supply-chain diversification, and expanding electronics and engineering capabilities could support the theme. He recommends treating it as a satellite allocation rather than a core portfolio holding.
• Banking and financial services: Yadav prefers this category, citing bank credit growth of 19.1% in September 2026, compared with 11.2% a year ago. Gross non-performing assets also declined from 2.22% in June 2025 to 1.67% in June 2026.
• Other opportunities: Bagdi considers consumption, manufacturing and export-oriented funds attractive alternatives from an earnings and valuation perspective. However, Pathak sees long-term growth potential in the capital markets theme, driven by rising retail participation.

October's inflows indicate investor allocation preferences, not a guarantee of future returns. Garg advises investors to assess a fund's consistency, portfolio concentration, valuation discipline, and performance across market cycles before investing in a specific scheme.

He also recommends continuing SIPs through market corrections instead of reacting to short-term volatility.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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