Institutional investors accounted for the remaining 39% of the industry’s AUM in June, down from 40% in the previous month.
The mutual fund industry’s overall AUM rose to ₹82.22 lakh crore in June 2026, registering a 10.5% year-on-year growth from ₹74.41 lakh crore a year earlier. The industry added over ₹7.8 lakh crore in assets over the past year and has grown at a compound annual growth rate (CAGR) of 20% over both the last five and 10 years ended June 2026, Franklin Templeton said.
Equity funds continued to account for a significant portion of the industry’s assets, with AUM rising 11.5% year-on-year to ₹37.38 lakh crore in June from ₹33.51 lakh crore.
SIP flows hit record high
Systematic investment plan (SIP) contributions touched a record ₹31,781 crore in June 2026, rising 17% from ₹27,269 crore in June 2025, according to Franklin Templeton.
SIP flows have doubled in less than three years, the fund house said.
The number of SIP accounts increased 14.4% year-on-year to 10.52 crore, while the average SIP contribution rose to ₹3,022 per month from ₹2,966 a year earlier.
The share of SIP assets with a holding period of more than five years increased to 31% in March 2026 from 30% a year earlier. SIP assets accounted for 29.1% of equity fund AUM in June 2026, up from 28.1% in June 2025.
Midcap, smallcap funds attract strong investor interest
Midcap and smallcap funds received the highest inflows during June, while flexi cap funds recorded the highest net sales over the last 12 months, Franklin Templeton said.
Most equity fund categories witnessed positive net sales during the month.
Multi-asset allocation funds also remained among the preferred categories, recording inflows of ₹4,811 crore in June. The category’s total AUM stood at ₹1.96 lakh crore, with inflows of over ₹70,000 crore during the previous 12 months.
Gold and silver exchange-traded funds (ETFs) also saw significant growth. Gold ETF AUM rose 2.6 times year-on-year to ₹1.70 lakh crore from ₹65,000 crore, while silver ETF AUM increased nearly four times to ₹79,000 crore from ₹20,000 crore.
B30 cities gain share in mutual fund assets
The contribution of B30 (beyond the top 30 cities) markets to the mutual fund industry’s AUM increased to 19% in June 2026 from 16% in December 2020, highlighting wider penetration beyond major cities.
Maharashtra remained the largest contributor to average AUM (AAUM), with assets of ₹33.50 lakh crore.
Among states, New Delhi, Telangana and Karnataka recorded the highest year-on-year AAUM growth at 39.95%, 18.99% and 15.08%, respectively.
Retail investors’ AUM grows faster than industry
Individual investors’ assets have grown nearly eight times over the last decade, compared with around six times growth for the overall mutual fund industry, Franklin Templeton said.
The five-year CAGR for individual investor AUM stood at 23%, higher than the industry average of 20%. Over the 10-year period, individual investor AUM grew at a CAGR of 22%, compared with 20% for the industry.