India’s Mutual Fund Industry Overview: Rs 81.01 Lakh Crore AUM Recorded in January
India’s mutual fund industry has kicked off 2026 with a robust performance, showcasing a significant increase in total assets under management (AUM). As of January, AUM soared to Rs 81.01 lakh crore, reflecting a remarkable 20.5% growth from Rs 67.25 lakh crore a year earlier. Over the past year, the industry has added over Rs 13.8 lakh crore to its asset base. This upward trajectory is supported by a compounded annual growth rate (CAGR) of 22% over the last five years and 20% over the past decade, indicating a sustained long-term growth trend.
Equity-led Expansion
Equity-oriented schemes have been the cornerstone of this growth, constituting 87% of individual investors’ assets. The AUM for these schemes climbed to Rs 58.02 lakh crore, up from Rs 48.13 lakh crore a year ago, marking a 20.6% increase. Fixed income-oriented AUM also saw a rise of 20.2% year-on-year, reaching Rs 23 lakh crore. As of January 2026, equity’s share of total industry assets stood at 59.8%, slightly up from 59.7% the previous year. The AUM for equity increased from approximately Rs 40.2 lakh crore to nearly Rs 48.5 lakh crore over the past year. Notably, equity net sales have remained positive for 59 consecutive months, with net sales excluding systematic investment plans (SIPs) and new fund offers (NFOs) also showing positive trends in January 2026, according to a report by Franklin Templeton.
SIPs Continue Momentum
Systematic Investment Plan (SIP) inflows reached Rs 31,002 crore in January 2026, reflecting a 17% increase from Rs 26,400 crore in January 2025. Monthly SIP flows have doubled in less than three years, with SIP AUM rising to Rs 16.36 lakh crore, compared to Rs 13.20 lakh crore a year ago, indicating a 24% growth. SIP assets now account for 28.2% of total equity AUM, up from 27.4% last year. The total number of SIP accounts reached 10.29 crore in January 2026, with 74.11 lakh new accounts registered, marking an all-time high. Discontinued SIP accounts numbered 55.46 lakh, with the percentage of discontinued SIPs falling to 75% in January 2026 from 109% a year earlier. This increase in discontinuations is attributed to the reconciliation of inactive SIP accounts between registrars and transfer agents (RTAs) and exchanges. Over the past year, aggregate SIP flows totaled Rs 3.40 lakh crore, up from Rs 2.76 lakh crore the previous year, with average SIP ticket sizes increasing to Rs 3,012 per month from Rs 2,571.
Investor Base Expands
The mutual fund investor base has also seen significant growth, with the number of unique investor accounts rising to 6.02 crore in January 2026, up from 5.33 crore a year earlier, reflecting a 12.8% increase. In January alone, around 12.14 lakh new investors joined the industry. Over the past year, a total of 68 lakh new investors entered the market, compared to 103 lakh in the same period last year. Individual investors now account for 60% of total AUM, while institutional investors hold the remaining 40%. Direct plans have gained traction, representing 49% of total AUM, up from 46% a year ago. Direct individual investments now comprise 29% of total individual AUM, compared to 27% last year.
Passive Assets Achieve Record Levels
The AUM of passive funds reached Rs 15.02 lakh crore in January 2026, marking a 38% increase from Rs 10.91 lakh crore a year earlier. Passive strategies now constitute 19% of total AUM, up from 16% last year and 12% in January 2022. Within passive funds, domestic equity passives accounted for 64.3% of passive AUM in January 2026, while debt passives made up 13.3%, commodity passives 19.9%, international passives 2.2%, and other index funds 0.3%. Equity-oriented exchange-traded funds (ETFs) represented 79% of domestic equity passive AUM, with index funds comprising the remaining 21%. In the debt passive category, target maturity index funds accounted for 48%, debt-oriented ETFs 49%, and other categories 3%.
Overall, the mutual fund industry in India is experiencing a period of robust growth, driven by strong equity performance, increasing SIP participation, and a growing investor base, positioning it well for the future.
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