India's Mutual Fund Industry Achieves Record AUM of Rs 82.03 Lakh Crore in February 2026
India's mutual fund industry has demonstrated remarkable growth, with assets under management (AUM) reaching an impressive Rs 82.03 lakh crore in February 2026. This represents a substantial 27.1 per cent increase from the Rs 64.53 lakh crore recorded a year earlier, according to data from a Franklin Templeton report. The surge highlights the industry's robust expansion and increasing investor confidence in financial markets.
Strong Performance Across Fund Categories
The growth was primarily fueled by sustained inflows into equity-oriented schemes and the continued expansion of systematic investment plan (SIP) participation. Equity fund AUM climbed 29.2 per cent year-on-year to Rs 35.44 lakh crore, while hybrid fund assets rose 30 per cent to Rs 11.71 lakh crore. Fixed income fund AUM also saw a healthy increase of 13.5 per cent, reaching Rs 19.65 lakh crore during the same period.
Passive Funds and Commodity-Linked Products Gain Momentum
Passive investment products continued to gain significant traction, with passive fund AUM rising 41.3 per cent to Rs 15.24 lakh crore. Their share in total industry assets increased to 19 per cent from 17 per cent a year ago. Within this category, domestic equity passive AUM grew 30.2 per cent to Rs 9.78 lakh crore. Notably, commodity-linked products experienced sharp expansion, with gold fund AUM surging to Rs 1.83 lakh crore from Rs 0.56 lakh crore and silver fund AUM increasing more than six-fold to Rs 0.92 lakh crore.
SIP Inflows and Investor Participation Show Steady Improvement
Industry participation metrics reflected steady improvement, with unique investor accounts rising to 6.09 crore in February, adding approximately 70 lakh investors over the past 12 months. Monthly SIP gross inflows stood at Rs 29,845 crore, up 15 per cent year-on-year, while total SIP AUM climbed 34 per cent to Rs 16.64 lakh crore. SIP assets accounted for about 28.5 per cent of total equity AUM during the month.
The total number of SIP accounts increased to 10.45 crore, with 65.72 lakh new accounts registered in February alone. Aggregate SIP inflows over the last 12 months amounted to Rs 3.43 lakh crore, marking a 21 per cent rise compared with the previous year.
Investor Composition and Industry Expansion
Individual investors continued to dominate industry participation, accounting for around 60 per cent of total AUM, while institutional investors held the remaining 40 per cent share. Direct plans contributed 49 per cent to total industry assets, up from 47 per cent a year ago, indicating a shift towards more direct investment approaches.
The mutual fund industry has added more than Rs 17.5 lakh crore to its asset base over the past year. Over the last five years, industry AUM has expanded at a compounded annual growth rate (CAGR) of about 21 per cent, significantly higher than the 11 per cent CAGR recorded in bank deposit growth over the same period.
Comparative Analysis with Banking Sector
Mutual fund assets were equivalent to about 33 per cent of total bank deposits in February 2026, compared with 29 per cent a year earlier, underscoring the growing preference for market-linked investments. The number of asset management companies operating in the country also increased to 50 from 43 in the previous year, indicating broader industry expansion and enhanced competition.
This comprehensive growth trajectory underscores the mutual fund industry's pivotal role in India's financial ecosystem, driven by increasing retail participation, innovative product offerings, and a favorable economic environment.
