India’s Mutual Fund AUM Reaches Record Rs 85.76 Lakh Crore as SIPs and Equity Surge
Assets under management across the Indian mutual fund industry attained a fresh high of Rs 85.76 lakh crore in July, advancing from Rs 75.36 lakh crore recorded in the same month of the previous year. The expansion reflects continuous gains in systematic investment plans, broad-based interest in equity products, and increasing participation from investors living outside the nation’s biggest urban hubs, based on figures published in Franklin Templeton’s Mutual Fund industry dashboard.
What Happened
Data from the industry dashboard reveals that total mutual fund assets climbed by over Rs 10 lakh crore within a twelve-month span. Equity-oriented strategies retained their position as the core pillar of the industry, with equity assets rising to approximately Rs 52.3 lakh crore from Rs 45.1 lakh crore a year prior. Consequently, equity allocations expanded their share of the industry’s aggregate assets to 61 percent, compared to 59.9 percent in the corresponding period last year.
Retail engagement through systematic investment plans showed sustained momentum. Monthly SIP inflows reached Rs 31,961 crore, representing a 12 percent year-on-year increase from Rs 28,464 crore recorded in July 2025. Total active SIP accounts climbed 12.5 percent to reach 10.63 crore. Alongside these flows, new SIP registrations stood at 61.44 lakh for the month. While account volumes increased, the average monthly ticket size per SIP registered a slight dip to Rs 3,007, down marginally from Rs 3,012 a year earlier. An increase in SIP account closures was also noted, which the dashboard attributed in part to the ongoing reconciliation of inactive accounts conducted between registrar and transfer agents and exchanges.
Key Highlights
- Record Overall Assets: Mutual fund industry assets under management touched Rs 85.76 lakh crore, compared with Rs 75.36 lakh crore in the prior year.
- Robust SIP Contribution: Monthly SIP inflows rose 12 percent year-on-year to Rs 31,961 crore, supporting a base of 10.63 crore accounts.
- Equity Fund Inflows: Net equity inflows totalled Rs 24,697 crore during July, with small-cap schemes attracting Rs 7,768 crore and mid-cap funds securing Rs 6,192 crore. Flexi-cap offerings took in Rs 4,709 crore, while large-and-mid-cap and multi-cap schemes collected Rs 3,425 crore and Rs 3,227 crore, respectively.
- Surge in Passive Offerings: Passive funds expanded by 24 percent to reach Rs 15.15 lakh crore in assets, up from Rs 12.18 lakh crore a year earlier. They now account for 18 percent of total industry assets and 37 percent of all mutual fund schemes.
- Debt Segment Leaders: Liquid funds led the fixed-income space with Rs 11,907 crore in monthly inflows, followed by money-market funds at Rs 2,118 crore and ultra-short-duration schemes at Rs 804 crore.
- Geographic Diversification: Locations outside the top 30 cities (B30) accounted for 19 percent of aggregate assets, expanding from 16 percent reported in December 2020.
Why This Matters
The latest figures illustrate significant structural shifts in how Indian households and institutions allocate capital. Individual investors continue to serve as the dominant force in equities, with approximately 87 percent of their total mutual fund portfolios deployed into equity-oriented categories. Over the past five years, assets managed on behalf of individual investors advanced at an annual compound rate of 23 percent, outstripping the 19 percent growth rate observed for the mutual fund industry as a whole. Conversely, institutional capital remains predominantly parked in fixed-income solutions such as liquid, money-market, and short-tenure debt funds.
Geographic broadening remains another defining factor. Asset accumulation in B30 regions has grown at an annual pace of 23 percent, compared to 19 percent in the top 30 cities (T30). At the state and union territory level, New Delhi recorded the fastest growth among the top ten jurisdictions with a 39.95 percent annual rise in AUM, followed by Telangana at 18.99 percent. Uttar Pradesh recorded a 1.4 percent increase to reach an AUM of Rs 3.56 lakh crore.
Simultaneously, investor appetite for index trackers and exchange-traded products has steadily elevated the profile of passive investing. Passive funds represent 18 percent of total industry AUM, climbing from 15 percent recorded in July 2022. Domestic equity portfolios dominate this segment, comprising 68.4 percent of all passive assets, while commodity passives hold 16.5 percent, debt passives represent 12.4 percent, and international passive funds make up the remaining 2.5 percent.
What to Watch Next
Market participants will monitor whether monthly SIP contributions can sustain the Rs 31,000 crore threshold, alongside tracking the pace of fresh SIP additions relative to account closures caused by RTA-exchange reconciliations. Further data releases will also demonstrate if B30 regions continue their higher compound asset growth over metropolitan centres, and whether domestic passive vehicles maintain their steady expansion across overall fund offerings.
Frequently Asked Questions
What was the total mutual fund AUM reported for July?
Total assets under management reached an all-time record of Rs 85.76 lakh crore, compared to Rs 75.36 lakh crore recorded twelve months earlier.
Which equity mutual fund categories saw the highest inflows?
Small-cap schemes recorded the largest fresh investments at Rs 7,768 crore, followed by mid-cap schemes at Rs 6,192 crore, flexi-cap schemes at Rs 4,709 crore, large-and-mid-cap funds at Rs 3,425 crore, and multi-cap funds at Rs 3,227 crore.
Why did SIP closures show an increase during this period?
According to dashboard findings, the increase in SIP closures was partly linked to the administrative reconciliation of inactive accounts conducted between registrar and transfer agents (RTAs) and stock exchanges.
Source: Times of India reporting on Franklin Templeton Mutual Fund Industry Dashboard data.