India Mutual Funds Hit Record AUM, SIPs Strong Despite Equity Dip
By Market Desk
India’s mutual fund industry reaches record AUM of ₹85.76 lakh crore in July 2026, driven by strong SIPs, even as equity inflows see a 15% dip.
India’s mutual fund industry achieved a significant milestone in July 2026, recording Assets Under Management (AUM) of ₹85.76 lakh crore. This new high for the industry was observed even as net inflows into equity mutual fund schemes experienced a 15% decline during the same period, indicating varied investor movements.
July 2026 Performance Highlights
Systematic Investment Plan (SIP) inflows demonstrated robust investor discipline, reaching a four-month high. These consistent contributions have now kept inflows above the ₹30,000 crore mark for an impressive fifth consecutive month, signaling sustained commitment from retail investors.
- SIP Inflows: A total of ₹31,961 crore was recorded, representing a four-month peak.
- Overall AUM: The industry’s Assets Under Management surged to a record ₹85.76 lakh crore.
- Equity Net Inflows: Registered ₹24,697.39 crore, which marked a 15% reduction from the previous month.
Equity Segment Navigates Mixed Investor Sentiment
The primary driver behind the decline in net inflows into equity mutual fund schemes was an increase in redemptions. This shift suggests a segment of investors opted to withdraw funds, leading to a noticeable reduction in the net capital absorbed by equity-oriented schemes.
Despite the overall contraction in equity net inflows, specific categories within the equity segment showcased resilience and continued to attract capital. Small-cap funds notably led investor interest, whereas large-cap funds faced a different trend.
- Small-cap funds: Garnered ₹7,767.50 crore in inflows, positioning them as the top performer.
- Mid-cap funds: Also saw significant investor preference, following closely behind small-cap funds.
- Large-cap funds: Contrarily experienced net outflows, indicating a rotation of capital within the equity space.
The divergent performance across various fund categories, coupled with the unwavering momentum of SIPs, highlights the nuanced dynamics currently at play within the Indian mutual fund landscape. These intricate trends offer valuable insights into prevailing investor sentiment and evolving sectoral preferences, which market participants will closely observe in the coming months.