Mutual Fund Industry Achieves Record AUM of Rs 82 Lakh Crore in February, Sustained SIP Flows
India’s mutual fund industry has experienced remarkable growth, with assets under management (AUM) reaching Rs 82.03 lakh crore in February 2026. This represents a significant 27.1 percent increase from Rs 64.53 lakh crore in the same month last year, as reported by Franklin Templeton. The surge in AUM has been primarily fueled by strong inflows into equity-oriented schemes and a rise in participation in systematic investment plans (SIPs), indicating a robust investor sentiment in the market.
Growth in Equity and Hybrid Funds
The mutual fund sector’s growth has been particularly notable in equity and hybrid funds. Equity fund AUM soared by 29.2 percent year-on-year, reaching Rs 35.44 lakh crore. Hybrid funds also saw a substantial increase, with assets climbing 30 percent to Rs 11.71 lakh crore. This growth reflects a growing appetite among investors for equity investments, driven by favorable market conditions and increasing awareness of mutual funds as a viable investment option. Additionally, fixed income fund AUM rose by 13.5 percent to Rs 19.65 lakh crore, showcasing a balanced interest across different asset classes.
Rise of Passive Investment Products
Passive investment products have gained significant traction in the mutual fund industry. The AUM of passive funds surged by 41.3 percent, reaching Rs 15.24 lakh crore. Their share of total industry assets increased to 19 percent, up from 17 percent a year earlier. Within this category, domestic equity passive funds saw a growth of 30.2 percent, amounting to Rs 9.78 lakh crore. Additionally, commodity-linked products, particularly gold and silver funds, experienced remarkable growth. Gold fund AUM skyrocketed to Rs 1.83 lakh crore, while silver fund AUM increased more than six-fold to Rs 0.92 lakh crore, highlighting a shift in investor preferences towards these alternative assets.
Increasing Investor Participation
The mutual fund industry has also witnessed a significant rise in investor participation. Unique investor accounts reached 6.09 crore in February, reflecting an addition of approximately 70 lakh investors over the past year. Monthly SIP gross inflows stood at Rs 29,845 crore, marking a 15 percent increase year-on-year. Total SIP AUM climbed 34 percent to Rs 16.64 lakh crore, with SIP assets accounting for about 28.5 percent of total equity AUM. The total number of SIP accounts rose to 10.45 crore, with 65.72 lakh new accounts registered in February alone. Over the last 12 months, aggregate SIP inflows amounted to Rs 3.43 lakh crore, representing a 21 percent increase compared to the previous year.
Dominance of Individual Investors
Individual investors continue to play a dominant role in the mutual fund landscape, accounting for around 60 percent of total AUM, while institutional investors hold the remaining 40 percent. Direct plans have also gained popularity, contributing 49 percent to total industry assets, up from 47 percent a year ago. The mutual fund industry has added over Rs 17.5 lakh crore to its asset base in the past year alone. Over the last five years, the industry AUM has expanded at a compounded annual growth rate (CAGR) of about 21 percent, significantly outpacing the 11 percent CAGR recorded in bank deposit growth during the same period. As of February 2026, mutual fund assets represented approximately 33 percent of total bank deposits, compared to 29 percent a year earlier, indicating a growing preference for mutual funds among investors. The number of asset management companies in India has also increased to 50 from 43 in the previous year, signaling broader industry expansion.
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