Total equity AAUM rose to about ₹33.54 lakh crore in March 2026, up from ₹28.57 lakh crore a year earlier, indicating continued retail inflows despite intermittent volatility.
Within equity schemes, flexi cap funds emerged as the largest and fastest-growing category, with average net AUM increasing to around ₹5.28 lakh crore from ₹4.22 lakh crore in March 2025, registering a 25.10% rise.
Their share in total equity AAUM expanded to 15.75% from 14.78%, underscoring investor preference for strategies that allow fund managers to dynamically allocate across market capitalisations, sectors and styles.
The broader equity mutual fund landscape also saw growth across most categories. Sectoral and thematic funds remained among the largest segments with average net AUM of about ₹5.01 lakh crore, although their share moderated slightly to 14.93% from 15.52% a year earlier, suggesting some cooling in concentrated bets.
Mid-cap funds recorded strong growth of 22.74%, taking their AUM to around ₹4.38 lakh crore and their share to 13.05%, while small-cap funds rose 20.33% to ₹3.47 lakh crore, accounting for 10.35% of the total.
Large-cap funds grew at a relatively slower pace of 11.04% to ₹3.87 lakh crore, with their share declining to 11.55%, pointing to a gradual shift away from traditional defensive allocations. Large and mid-cap funds also expanded 23.39% to ₹3.14 lakh crore, maintaining a steady presence with a 9.37% share.
Some categories witnessed relatively moderate growth, reflecting evolving investor priorities. ELSS funds saw marginal growth of 1.99%, with AUM at about ₹2.30 lakh crore and their share declining to 6.85%.
Value and contra funds grew 14.20% to ₹2.04 lakh crore, holding a stable share of 6.08%, while multi-cap funds increased 24.14% to ₹2.10 lakh crore, with their share inching up to 6.27%. Focused funds rose 16.99% to around ₹1.64 lakh crore, accounting for 4.88% of equity AAUM, whereas dividend yield funds remained the smallest category at ₹30,604 crore, contributing less than 1%.
Vaibhav Chugh, CEO of Abakkus Mutual Fund, said the steady expansion in equity AAUM reflects growing investor maturity and a shift towards long-term investing despite market volatility.
He noted that strong flows into flexi cap, mid-cap and small-cap funds indicate increasing appetite for diversified and higher-growth opportunities, while relatively modest growth in large-cap and ELSS categories highlights a shift towards more flexible and performance-oriented strategies.