Equity MF Inflows Slow in January 2026: Key Signals for NRIs

AMFI Jan 2026:

Indian equity fund inflows cooled 14% MoM to ₹24,028 crore, while gold ETFs surged 106%, signaling a tactical shift toward hedging amid market uncertainty,

A trend NRIs should note when allocating India exposure. For NRIs with India exposure, this is less about short-term numbers and more about understanding where capital is moving and why.

What’s new compared to a few months ago?

Indian equity mutual funds are still receiving money but at a slower pace.

Key data points from January 2026:

• Equity mutual fund inflows fell ~14% month-on-month

• Total equity inflows stood at ₹24,028 crore, down from ~₹28,000 crore in December

• This marks the second consecutive month of decline in equity inflows

• At the same time, gold ETF inflows more than doubled, overtaking equity flows

This combination marks an unusual moment: gold ETF inflows briefly eclipsed equity mutual funds, a first in recent AMFI reporting suggesting a tactical rebalancing rather than panic selling. 

For NRIs, the concern is not “Is India losing momentum?”
The real question is: Is capital becoming more defensive and should your portfolio reflect that?

Key Reasons Behind the Shift

Several structural and behavioural factors are at play:

• Profit booking after a strong 2024–25 rally
  Many investors are locking in gains, especially in mid- and small-cap funds.

• Higher global uncertainty
  Interest-rate expectations, geopolitical risks, and currency volatility are encouraging safer allocations.

• Rising preference for portfolio hedging
  Gold ETFs are increasingly being used as a stabiliser, not a speculative bet.

• Selective equity exposure
  Large-cap funds are holding up better than mid- and small-cap categories.

• SIP discipline remains intact
  Monthly SIP inflows stayed around ₹31,000+ crore, indicating long-term confidence hasn’t broken.

Equity Mutual Fund Net Inflows – Monthly Snapshot

What NRI Investors Should Do Now

This phase calls for clarity not reaction. Here’s how NRIs should think about their India exposure right now:

1. Don’t read monthly flow data as a buy-or-sell signal

• Mutual fund inflows fluctuate with sentiment

• India’s long-term growth drivers remain intact

• Avoid timing decisions based purely on one or two months of data

2. Review equity allocation by market cap

• If your portfolio is heavily tilted toward mid- and small-cap funds, this is a good time to reassess risk

• Consider balancing with large-cap or diversified equity funds for stability

3. Use gold as a hedge, not a headline trade

• Rising gold ETF inflows signal risk management, not fear

• For NRIs, gold can:

  • Reduce portfolio volatility

  • Act as a hedge against global uncertainty

  • Provide diversification against equity-heavy exposure

• Allocation should be measured, not excessive

4. Stay consistent with SIPs

• Stable SIP inflows show that disciplined investing still works

• If you’re investing via NRE/NRO routes or global platforms, SIPs help:

  • Smooth currency fluctuations

  • Reduce market-timing risk

  • Build long-term India exposure steadily

5. Factor taxes, repatriation, and currency—not just returns

• Equity returns alone don’t define success for NRIs

• Review:

  • Capital gains tax treatment

  • Repatriation timelines

  • USD/INR impact on net returns

• A slightly lower return with better tax efficiency often wins over time

The key takeaway:
This is a phase for portfolio refinement, not aggressive repositioning.

How Pivot Money Can Help

At Pivot Money, we help NRIs:

• Interpret Indian market data with a long-term wealth lens

• Align equity, gold, and global exposure with real financial goals

• Navigate taxation, repatriation, and currency risks alongside returns

• Build resilient portfolios, not reactive ones

Final Thought

January’s data is not a warning sign, it’s a reminder.
Smart investors adjust quietly while markets make noise.

For NRIs, staying invested is important but staying aligned matters more.

For more :
https://www.pivotmoney.app/