India’s mutual fund assets hit record ₹73.7 lakh crore in FY26 as SIP participation strengthens

India’s mutual fund industry extended its growth trajectory in FY2025-26, with average assets under management (AUM) reaching an all-time high of ₹73.7 lakh crore, as sustained retail participation and higher systematic investment plan (SIP) contributions continued to channel domestic savings into financial markets, according to the Securities and Exchange Board of India’s (SEBI) Annual Report 2025-26.

Average AUM expanded 12.2% from ₹65.7 lakh crore in FY2024-25, while the mutual fund investor base increased 13.2% year-on-year to 6.1 crore. The regulator said the industry maintained its momentum despite heightened market volatility and foreign portfolio investor outflows during the year.

SIPs remained the primary driver of retail inflows. The number of active SIP accounts touched a record 10.45 crore by the end of March 2026, while average monthly SIP contributions rose 25.8% to ₹16,413 crore. According to SEBI, the steady increase reflects a growing preference among investors for disciplined, long-term wealth creation through regular investments.

The report noted that recurring SIP inflows have emerged as a dependable source of domestic capital for the mutual fund industry, helping cushion the impact of global market uncertainty and reducing dependence on overseas portfolio flows.

SEBI also highlighted that mutual fund adoption continued to broaden beyond India’s largest cities. Investor participation from Tier-II and Tier-III centres increased further during FY2025-26, indicating that mutual funds are gaining wider acceptance as a household investment avenue across the country rather than remaining concentrated in metropolitan markets.

Investor preferences diversified during the year, with passive investment products, including exchange-traded funds (ETFs) and index funds, witnessing sustained traction. Gold ETFs also saw a sharp rise in demand, with inflows increasing 4.6 times over the previous year as investors sought safe-haven assets amid geopolitical uncertainty.

The report further showed that domestic institutional investors recorded net inflows of ₹8.5 lakh crore during FY2025-26, offsetting foreign portfolio investor outflows and providing stability to the equity market. SEBI said the continued expansion of mutual funds, rising SIP participation and increasing retail penetration underscore the growing role of domestic household savings in deepening India’s capital markets and supporting long-term economic growth.