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Flexi Cap Funds Lead 17% Surge in India's Equity Mutual Fund AUM

Equity-oriented mutual funds in India saw a robust 17.38% year-on-year increase in average assets under management in March. Flexi Cap Funds emerged as the largest and fastest-growing category, with AUM surging 25.10% to about Rs 5.28 lakh crore. The total average net AUM for equity schemes rose to approximately Rs 33.54 lakh crore, reflecting sustained retail participation. Strong growth in mid and small cap funds also indicated a strong investor appetite for alpha generation opportunities.

Key Points: Equity Mutual Fund AUM Rises 17% in March, Flexi Cap Leads

  • Flexi Cap Funds grew 25.1% YoY
  • Mid Cap Funds rose 22.74%
  • Total equity AUM hit ~Rs 33.54 lakh crore
  • Thematic Funds AUM moderated slightly
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India's equity mutual fund AUM rises 17.38 pc in March

India's equity mutual fund AUM grew 17.38% YoY in March, driven by strong inflows into Flexi Cap, Mid Cap, and Thematic Funds.

"Flexi Cap Funds offer agility, which is much needed in today's dynamic market conditions - Vaibhav Chugh"

New Delhi, April 16

Equity‑oriented mutual funds saw a robust 17.38 per cent year‑on‑year increase in average assets under management in March, driven by strong flows into flexi Cap, mid Cap and thematic funds, a report said on Thursday.

The report from Abakkus Mutual Fund said that flexi Cap Funds emerged as the largest and fastest‑growing category, with average net AUM rising to around Rs. 5.28 lakh crore, compared to Rs 4.22 lakh crore a year ago, registering a 25.10 per cent year‑on‑year growth.

Flexi Cap Funds category now commands a 15.75 per cent share of total equity AAUM total average net AUM of equity‑oriented schemes.

The total average net AUM of equity-oriented schemes rose to about Rs. 33.54 lakh crore in March 2026 from around Rs. 28.57 lakh crore a year earlier, reflecting sustained retail participation and resilience in equity markets despite intermittent volatility, the report added.

Strong expansion of flexi cap funds highlighted a clear investor preference for dynamic equity allocation strategy which offers fund managers the flexibility to navigate across market capitalisations, sectors and styles in an evolving macro-economic environment.

The mutual fund industry showed broad‑based gains as mid cap funds grew 22.74 per cent to about Rs. 4.38 lakh crore, small cap funds rose 20.33 per cent to Rs. 3.47 lakh crore, and Large & Mid Cap Funds surged 23.39 per cent to Rs. 3.14 lakh crore.

Sectoral or Thematic Funds remained among the largest categories with an average net AUM of roughly Rs 5.01 lakh crore, though their share moderated slightly to 14.93 per cent from 15.52 per cent in March, indicating some cooling in concentrated thematic allocations.

"Flexi Cap Funds offer agility, which is much needed in today's dynamic market conditions, a flexibility that has resonated well with investors navigating today's evolving macro environment," said Vaibhav Chugh, CEO, Abakkus Mutual Fund.

Meanwhile, sustained flows into Mid and Small Cap funds indicate a strong appetite for alpha generation opportunities, he said.

In contrast, the relatively modest growth in Large Cap Funds and ELSS categories highlights a clear shift in investor priorities towards more flexible, performance oriented - investment strategies, Chugh added.

- IANS

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Reader Comments

P
Priya S
While the growth is impressive, I hope new investors understand the risks, especially in mid and small caps. The report mentions "intermittent volatility" – that's a crucial point. Don't just chase past returns.
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Rohit P
Flexi cap becoming the largest category makes perfect sense. In our market, where sectors rotate quickly, giving the fund manager flexibility is key. My own portfolio is heavily tilted towards flexi cap funds. Good to see data backing the trend.
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Sarah B
Interesting to see the slight cooling in thematic funds. Maybe investors are realizing that betting on a single theme (like EVs or renewables) can be very risky compared to a broader, flexible approach. Smart move.
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Vikram M
Rs. 33.54 lakh crore in equity AUM! This is a massive number and shows how much household savings are now channeled into the formal market. This depth is good for the long-term health of Indian capital markets. Jai Ho!
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Karthik V
A respectful criticism: Articles like this often fuel the fear of missing out (FOMO). New investors see these high growth percentages and jump in without proper asset allocation. Media should also emphasize the importance of debt funds and emergency funds.
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Michael C
The shift away from ELSS is notable.

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