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Indian MF AUM Hits Rs 73.73 Lakh Cr in FY26, Equity Inflows Surge in March

The Indian mutual fund industry's assets under management grew by 12.2% in FY26 to reach Rs 73.73 lakh crore. March data revealed a strong rebound in equity fund appetite, with inflows hitting an eight-month high, while SIP contributions set a new monthly record. However, the overall industry experienced significant net outflows for the month, primarily driven by debt funds. Growth for the full year was tempered by market volatility linked to geopolitical tensions and foreign investor selling.

Key Points: India's Mutual Fund AUM Rises 12% to Rs 73.73 Lakh Crore in FY26

  • FY26 AUM up 12.2% to Rs 73.73 lakh crore
  • March equity inflows hit 8-month high of Rs 40,450 cr
  • SIP contributions reach record Rs 32,087 cr in March
  • Overall industry saw net outflows of Rs 2.39 lakh crore in March
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Indian mutual fund industry's AUM rises 12 pc to Rs 73.73 lakh crore in FY26

FY26 ends with mutual fund AUM at Rs 73.73 lakh crore. March sees record SIPs and a sharp rebound in equity fund inflows despite market volatility.

"Inflows into actively managed equity mutual funds rose to Rs 40,450.26 crore in the month, which is the highest since July 2025 - AMFI Data"

Mumbai, April 13

The domestic mutual fund industry closed FY26 with assets under management rising 12.2 per cent to Rs 73.73 lakh crore, adding Rs 8 lakh crore to its asset base over the year as sustained equity market volatility weighed on overall growth, according to latest data released by the Association of Mutual Funds in India.

In addition to the full-year AUM growth, March data pointed to a sharp rebound in equity fund appetite even after geopolitical tensions. Inflows into actively managed equity mutual funds rose to Rs 40,450.26 crore in the month, which is the highest since July 2025, up from Rs 25,977.81 crore in February.

Meanwhile, SIP contributions hit a record high of Rs 32,087 crore in March, compared to Rs 29,845 crore the previous month, underscoring sustained retail investor participation even amid market turbulence.

Analysts attributed the surge in equity inflows to year-end portfolio allocations, opportunistic deployment of capital during recent corrections and the perception of improved valuations following the West Asia-linked selloff.

However, the overall mutual fund industry reported net outflows of Rs 2.39 lakh crore in March, against net inflows of Rs 94,530 crore in February. Debt mutual funds witnessed outflows of Rs 2.94 lakh crore in March.

Additionally, Gold ETF inflows nearly halved to Rs 2,266 crore in March, against Rs 5,254.95 crore in February.

Among equity categories, flexi-cap funds led inflows at Rs 10,054.12 crore, up from Rs 6,924.65 crore in February. Small-cap and mid-cap funds attracted Rs 6,263.56 crore and Rs 6,063.53 crore, respectively, compared to Rs 3,881.06 crore and Rs 4,002.99 crore in the previous month. While large-cap funds drew Rs 2,997.84 crore.

Moreover, the AUM accretion was sharply lower compared to the nearly 23 per cent growth recorded in FY25 and the 36 per cent surge in FY24.

During the year, market fluctuations occurred due to elevated valuations, subdued corporate earnings, geopolitical tensions, including trade-related concerns, continued foreign institutional investor (FII) selling and the absence of AI-linked investment flows.

However, selling pressure intensified more recently following the US-Iran-Israel conflict, which pushed crude oil prices higher and raised concerns over India's fiscal outlook.

- IANS

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Reader Comments

P
Priya S
The growth is good, but 12% is much lower than previous years. The article mentions geopolitical tensions and FII selling as headwinds. As an investor, I'm a bit worried about the volatility. My small-cap fund has been on a rollercoaster this year.
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Rohit P
Interesting to see flexi-cap funds leading the inflows. Seems like investors are preferring funds that give the fund manager flexibility to move between large, mid, and small caps based on market conditions. Smart move in these uncertain times.
S
Sarah B
The massive outflow from debt funds (₹2.94 lakh crore!) in March is concerning. Is this due to year-end treasury operations by corporates, or are investors shifting to other fixed-income options? Would love more analysis on that point.
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Vikram M
The resilience is commendable. Despite West Asia tensions and crude oil price fears, equity inflows rebounded sharply. It shows Indian investors are looking at corrections as buying opportunities. Long-term India story remains intact. 🇮🇳
K
Kavya N
While the headline AUM growth is positive, I have a respectful criticism. The industry and media often celebrate these numbers without enough emphasis on investor education. Many new SIP investors may not understand the risks, especially in mid and small caps. Returns are not guaranteed.
M
Michael C

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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