Flexi Cap Funds Lead Equity Inflows Amid Sectoral Fund Surge in February 2026

In February 2026, flexi cap mutual funds led equity inflows for the seventh consecutive month, attracting Rs 6,924 crore, followed by mid cap and small cap funds. Sectoral and thematic funds saw a 187% monthly inflow surge, mainly driven by new fund launches and selective sector investments rather than broad-based demand. Experts caution that recent inflows may reflect performance-chasing behavior rather than long-term conviction, advising investors to maintain disciplined SIPs and focus on diversified portfolios.