The note said the Indian mutual fund industry continued to expand its investor base, adding around 71 lakh new investors over the past 12 months, compared with 69 lakh in the corresponding previous period.
Equity remains dominant in mutual fund assets
Equity funds maintained their dominance within the mutual fund industry, with their share rising marginally to 60.1% of total assets in April 2026 from 59.9% a year earlier. Overall equity AUM increased from about ₹41.9 lakh crore to nearly ₹49.2 lakh crore during the period.
The total mutual fund industry AUM stood at ₹81.9 lakh crore at the end of April 2026, reflecting an increase of ₹11.9 lakh crore over the past year. The industry has also recorded a long-term growth trend, expanding at a CAGR of 20% over five years and 19% over ten years, the note said.
Flexi cap funds see strong inflows
Among equity categories, flexi cap funds recorded the highest net inflows over the last 12 months. The category attracted over ₹93,000 crore in inflows during the period and more than ₹10,000 crore in April 2026 alone, with sustained investor interest in recent months.
Investor base hits record levels
The total number of mutual fund investors rose to 6.14 crore in March 2026, with 4.71 lakh new investors added that month alone. Over the past year, the industry added 71 lakh investors, slightly higher than the 69 lakh additions in the previous year.
SIP flows remain strong despite volatility
Systematic investment plan (SIP) inflows continued to show resilience amid volatile market conditions. SIP contributions stood at ₹31,115 crore in April 2026, up 17% year-on-year, compared with ₹26,632 crore in April 2025.
SIP accounts increased to 10.44 crore, reflecting a 17.5% rise year-on-year. The average SIP ticket size, however, slightly declined to ₹2,980 per month from ₹2,995 a year ago.
SIP assets with a holding period of over five years rose to 31% in March 2026, compared with 30% a year earlier, indicating improving long-term participation.
Passive and B30 segments expand
Passive mutual fund assets grew 26% year-on-year to ₹14.74 lakh crore in April 2026, up from ₹11.67 lakh crore a year earlier. Their share in total AUM increased to 18% from 13% in 2022.
The share of assets from B30 (beyond top 30 cities) rose to 19% in April 2026 from 16% in December 2020. B30 assets continued to grow faster at a CAGR of 22%, compared with 17% for T30 markets over the past six years.
Industry trends
The report noted that mutual funds have strengthened their position relative to bank deposits, with AUM now equivalent to about one-third of bank deposits. Domestic institutional investors (DIIs) recorded net inflows of ₹8.7 lakh crore over the past 12 months, while foreign portfolio investors (FPIs) saw net outflows of ₹4.1 lakh crore.
