India’s mutual fund industry reached an all-time high of Rs 87.08 lakh crore in August 2026, adding more than Rs 11.9 lakh crore to its assets over the past year. Industry AUM rose 15.8 per cent year-on-year from Rs 75.19 lakh crore in August 2025. The industry has recorded a 19 per cent CAGR in both the last five and 10 years, according to the Mutual Fund Industry Dashboard for August 2026.According to Frankling Templeton’s latest report, equity funds remained the largest segment, with AUM of Rs 39.25 lakh crore, up 18.5 per cent from Rs 33.13 lakh crore a year earlier. Hybrid funds rose 17.3 per cent to Rs 12.47 lakh crore, while fixed income funds grew 2.8 per cent to Rs 19.45 lakh crore. Passive funds recorded stronger growth, with AUM rising 27.2 per cent to Rs 15.90 lakh crore.The share of equity in total mutual fund assets stood at 58 per cent in August 2026, compared with 56.6 per cent a year earlier.
Investor base continues to expand
The total investor count rose to 6.14 crore in March 2026, with 4.71 lakh investors added during the month. Over the preceding 12 months, 71 lakh new investors were added, compared with 69 lakh during the same period a year earlier.By August, unique investor accounts stood at 6.28 crore, representing a 14 per cent increase from 5.49 crore a year earlier.The number of mutual fund schemes also increased to 1,985 from 1,843 a year ago. Of these, 1,250 were active schemes and 735 were passive schemes, meaning passive products accounted for 37 per cent of the total schemes, compared with 34 per cent a year earlier.
SIP flows hit fresh high
Monthly SIP gross sales reached an all-time high of Rs 32,297 crore in August 2026, up 14 per cent from Rs 28,265 crore in August 2025. SIP accounts rose 12.1 per cent year-on-year to 10.75 crore, while the average SIP ticket size increased to Rs 3,003 per month from Rs 2,947 a year earlier.Aggregate SIP flows have grown around seven times at a 26 per cent CAGR between FY17 and FY26.SIP AUM stood at Rs 18.62 lakh crore in August, up 23 per cent from Rs 15.18 lakh crore a year earlier. Its share of equity AUM increased to 30.7 per cent from 28.2 per cent.The proportion of industry SIP AUM with a holding period of more than five years also increased to 32 per cent in August 2026 from 30 per cent in the previous year.
Equity categories see strong flows
Equity funds recorded net sales of Rs 29,329 crore in August. Small-cap funds led the inflows at Rs 7,973 crore, followed by mid-cap funds at Rs 6,989 crore and flexi-cap funds at Rs 5,059 crore. Large & mid-cap funds attracted Rs 3,873 crore, while multi-cap funds saw Rs 3,733 crore of net sales. Large-cap funds, however, recorded net outflows of Rs 1,147 crore.Over the past 12 months, equity funds recorded net flows of Rs 4.98 lakh crore.New fund offer flows stood at Rs 37,393 crore over the last 12 months, of which equity funds accounted for 77 per cent, or Rs 28,674 crore.The share of assets from beyond the top 30 cities also increased. B30 cities accounted for 19 per cent of industry AUM in August 2026, up from 16 per cent in December 2020. B30 AUM recorded a five-year CAGR of 24 per cent, compared with 19 per cent for T30 cities.The dashboard also showed net inflows of Rs 8.4 lakh crore for domestic institutional investors over the last 12 months through August 2026, compared with net outflows of Rs 4.5 lakh crore for foreign portfolio investors.
