Mutual fund assets under management in India grew to ₹73.73 lakh crore in FY26 amid rising SIP contributions and strong equity inflows, data from Association of Mutual Funds in India shows.
Mumbai: India’s mutual fund industry closed FY26 with assets under management (AUM) rising 12.2 per cent year-on-year to ₹73.73 lakh crore, adding nearly ₹8 lakh crore despite sustained equity market volatility, according to data released by the Association of Mutual Funds in India (AMFI).
Equity mutual funds see strong inflows in March
March data highlighted a sharp rebound in investor appetite for equity mutual funds, even amid geopolitical uncertainty.
Inflows into actively managed equity schemes surged to ₹40,450.26 crore — the highest since July 2025 — compared with ₹25,977.81 crore in February, signalling renewed investor confidence.
SIP inflows hit an all-time high amid market volatility
Systematic Investment Plan (SIP) contributions reached a record ₹32,087 crore in March, up from ₹29,845 crore in the previous month, underlining strong and consistent retail investor participation.
Analysts attributed the surge to year-end portfolio rebalancing, opportunistic buying during market corrections and improved valuation comfort following the recent West Asia-driven sell-off.
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Mutual fund outflows surge; debt funds lead decline
Despite strong equity inflows, the overall mutual fund industry recorded net outflows of ₹2.39 lakh crore in March, compared with net inflows of ₹94,530 crore in February.
Debt mutual funds accounted for the bulk of the outflows at ₹2.94 lakh crore, reflecting shifting investor preferences amid interest rate and liquidity dynamics.
Gold ETF inflows also moderated sharply, falling to ₹2,266 crore in March from ₹5,254.95 crore in February.
Flexi-cap, mid-cap and small-cap funds attract investors
Among equity categories:
- Flexi-cap funds led inflows at ₹10,054.12 crore
- Small-cap funds attracted ₹6,263.56 crore
- Mid-cap funds saw inflows of ₹6,063.53 crore
- Large-cap funds received ₹2,997.84 crore
The data indicate a continued preference for diversified and growth-oriented equity strategies.
Slower AUM growth compared to previous years
The 12.2 per cent AUM growth in FY26 marks a slowdown compared to 23 per cent growth in FY25 and a robust 36 per cent expansion in FY24.
Market experts said the moderation was driven by elevated valuations, subdued corporate earnings, persistent foreign institutional investor (FII) outflows and global geopolitical uncertainties.
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Geopolitical tensions, crude oil surge impact markets
Recent escalation in the US-Iran-Israel conflict has intensified selling pressure, pushing crude oil prices higher and raising concerns over India’s fiscal balance, inflation outlook and currency stability.
Outlook: Volatility to persist, retail participation strong
Despite short-term volatility, strong SIP inflows and consistent retail participation are expected to provide stability to the mutual fund industry going forward.
IANS
Published: 13 Apr 2026, 12:45 pm IST
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