According to AMFI data cited by Franklin Templeton India Mutual Fund, flexi cap funds recorded net inflows of ₹95,154 crore over the last 12 months through May 2026, the highest among open-ended equity categories. The category also saw net inflows of ₹5,176 crore in May 2026 alone.
Mid cap and small cap funds also continued to attract strong investor interest despite market fluctuations. Small cap Funds registered monthly net inflows of ₹4,946 crore in May, while mid cap funds saw inflows of ₹4,385 crore during the month. On a 12-month basis, small cap funds and mid cap funds garnered net inflows of ₹56,490 crore and ₹56,011 crore respectively.
Large & mid cap funds recorded net inflows of ₹46,832 crore over the past year, while multi cap funds attracted ₹33,763 crore. Sectoral and thematic funds, which had seen elevated inflows in recent years, posted comparatively moderate net inflows of ₹648 crore in May 2026, although annual net sales remained strong at ₹28,519 crore.
Most equity fund categories witnessed positive net sales during May 2026, indicating sustained retail participation in equity markets despite ongoing volatility.
The broader mutual fund industry also continued to see steady growth in investor participation and assets under management (AUM). Total industry AUM stood at ₹81.6 lakh crore at the end of May 2026, with equity mutual fund AUM rising 12.7% year-on-year to ₹36.18 lakh crore.
Individual investors continued to dominate industry holdings, accounting for over 60% of total mutual fund AUM. High-net-worth individuals (HNIs) contributed 33.71% of assets, while retail investors accounted for 26.67%.
Systematic Investment Plan (SIP) inflows remained resilient through market volatility. Monthly SIP contributions rose to ₹30,954 crore in May 2026, up from ₹26,688 crore a year earlier. SIP assets under management climbed 17% year-on-year to ₹17.12 lakh crore, while SIP assets as a share of equity AUM rose to 29%, a multi-year high.
The number of SIP accounts increased to 10.47 crore in May 2026, reflecting continued participation from retail investors.
Passive investment products also maintained strong growth momentum. Passive fund AUM rose 23% year-on-year to ₹14.77 lakh crore, with passive assets accounting for 18% of the industry’s total AUM.
The data further showed expanding participation beyond major urban centres. Assets from B30 locations continued to grow at a faster pace than those from the top 30 cities, with the share of B30 assets in total industry AUM rising to 18% in May 2026 from 16% in December 2020.
Domestic institutional investors (DIIs), including mutual funds, remained a key driver in Indian equities, recording net inflows of ₹8.9 lakh crore over the last 12 months through May 2026, compared with net outflows of ₹4.7 lakh crore by foreign portfolio investors (FPIs).
