HDFC Flexi Cap, Kotak Midcap, Nippon India Small Cap funds lead equity inflows in February; check details

Equity mutual fund categories such as flexi cap, mid cap and small cap funds attracted the highest inflows in February 2026, according to data from the Association of Mutual Funds in India (AMFI). Investor flows into these categories highlight continued interest in diversified and growth-oriented strategies despite periodic volatility in equity markets.

Flexi cap funds led the charts with net inflows of Rs 6,924.65 crore, followed by mid cap funds with Rs 4,002.99 crore and small cap funds with Rs 3,881.06 crore during the month.

These categories typically attract strong investor interest as they offer flexibility in portfolio allocation or exposure to companies with higher growth potential. Within each category, a handful of schemes stood out for attracting the largest share of investor money during February.

Flexi cap funds

Among flexi cap schemes, HDFC Flexi Cap Fund recorded the highest inflow during the month, attracting Rs 3,003.76 crore, according to data from ACE MF.

Other schemes that saw notable inflows include ICICI Prudential Flexicap Fund, Rs 756.27 crore and Aditya Birla Sun Life Flexi Cap Fund, Rs 506.17 crore. Kotak Flexicap Fund and Parag Parikh Flexi Cap Fund also witnessed inflows during the period.

A look at the cash holdings trend shows contrasting positioning among funds.

For instance, Parag Parikh Flexi Cap Fund has gradually reduced its cash holdings over the past few months, from about 22.17% in September 2025 to 18.08% in February 2026. The gradual decline suggests the fund has been deploying cash into equities over time, even though it continues to maintain relatively higher liquidity compared with peers.

By contrast, HDFC Flexi Cap Fund saw a sharp rise in cash holdings in January before trimming them again in February.

Midcap funds

Among mid cap schemes, Kotak Midcap Fund attracted the highest inflows in February at Rs 2,653.27 crore, followed by Nippon India Growth Mid Cap Fund, which saw inflows of Rs 2,255.15 crore.

HDFC Mid Cap Fund, Axis Midcap Fund, and SBI Midcap Fund also featured among the top inflow recipients during the month.

Cash positions in these funds remain relatively low, indicating that much of the incoming money is being deployed into equities.

For instance, Kotak Midcap Fund maintained cash levels below 1% of assets in recent months, while Nippon India Growth Mid Cap Fund reduced its cash allocation from 2.24% in December 2025 to about 1.31% in February 2026.

Small cap Funds

Small cap schemes also witnessed robust investor demand during February.

Nippon India Small Cap Fund recorded the highest inflow of Rs 1,829.34 crore, followed by Bandhan Small Cap Fund, which saw inflows of Rs 1,207.59 crore.

DSP Small Cap Fund, Invesco India Smallcap Fund, and Kotak Small Cap Fund were among the other schemes that attracted notable inflows.

Cash holdings show differing strategies between the two top funds.

Bandhan Small Cap Fund increased its cash allocation to about 10.25% in February, suggesting a more cautious stance. In contrast, Nippon India Small Cap Fund maintained a much lower cash position at around 4%, indicating continued deployment into equities.

Overall, the inflow trends suggest that investors continue to favour equity categories that offer either portfolio flexibility or exposure to higher-growth segments of the market, while fund managers vary in how quickly they deploy fresh inflows.