Equity Mutual Funds Hit Record ₹48.5 Lakh Crore in July

By Market DeskEquity Mutual Funds Hit Record ₹48.5 Lakh Crore in July

Indian equity mutual funds reached a record ₹48.5 lakh crore in July, driven by strong active schemes and consistent SIP inflows, marking a significant milestone.

Equity mutual fund assets reached a new record high of ₹48.5 lakh crore in July. This sum makes up 56% of the mutual fund industry’s total assets managed, known as Average Assets Under Management (AAUM).

Active equity schemes were the main driver of this surge. They recorded a 13.3% year-on-year growth. These schemes now account for nearly 78% of all equity assets under management.

Their contribution to the overall mutual fund industry’s total assets managed also climbed to 44%.

Top Equity Fund Types

Within open-ended equity schemes, flexi-cap funds held the largest share of assets at 15.6%. Thematic funds followed closely at 14.6%.

Mid-cap funds made up 13.6% of assets. Small-cap funds held 11.5%. Together, these four categories represented over 55% of the total equity assets managed.

SIP Momentum Continues

Systematic Investment Plans (SIPs), which are regular, fixed investments, showed strong investor engagement. Monthly contributions reached ₹31,961 crore in July. This marks the fifth month in a row above the ₹30,000 crore threshold.

Cumulative SIP contributions for the first four months of FY27 amounted to ₹1.3 lakh crore. This reflects a 15.4% increase compared to last year.

SIP assets also crossed ₹18 lakh crore for the first time, hitting ₹18.2 lakh crore in July. They now make up 21.1% of the mutual fund industry’s total assets, showing ongoing investor participation.

Passive Funds Set Records

Passive funds also achieved a new record, with their total assets managed (AAUM) rising to ₹15.5 lakh crore. This is a significant 23.3% increase year-on-year.

Equity passive funds comprised nearly 68% of these assets. Gold and silver exchange-traded funds (ETFs), which are funds tracking asset prices, also saw strong growth.

Debt Funds See Decline

Conversely, debt fund assets managed (AAUM) experienced a slight decline of 0.4% year-on-year. They settled at ₹21.7 lakh crore.

This contraction was mainly due to a sharp decrease in passive debt funds. Active debt assets also remained largely subdued.

Overall, the July data shows continued expansion and strong performance in the equity-focused part of the mutual fund industry. SIPs and passive funds hit record levels, while debt assets saw comparative stagnation.

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