Equity inflows power ₹9.5 lakh crore jump in mutual fund AUM since last Independence Day

Mutual funds have become a preferred investment choice for Indian retail investors in recent years, as they have increasingly shifted their savings from traditional bank deposits towards equities, seeking to participate in India’s growth story. A majority of investors are opting for the mutual fund route to gain exposure to listed companies.

The robust inflows have not only broadened the investor base but also provided a strong foundation for the equity market, encouraging companies to raise funds through the stock market to capitalise on sustained domestic demand. This has also contributed to the expansion of the Indian stock market, placing it among the top five markets globally by market capitalisation.

AUM crosses ₹85 lakh crore for first time

Over the last year, from July 2025 to July 2026, the size of the mutual fund industry increased by ₹9.65 lakh crore, rising from ₹75.35 lakh crore to ₹85.76 lakh crore, crossing the ₹85 lakh crore mark for the first time last month, according to data from the Association of Mutual Funds in India (AMFI).

A significant portion of these inflows has come from millennials, who are embracing stock market investments at a faster pace than previous generations.

While some investors prefer direct investments through demat accounts, many continue to favour the more disciplined approach of systematic investment plans (SIPs) to achieve their long-term financial goals.

The expansion in AUM has been primarily driven by steady inflows into equity schemes, whose assets stood at ₹33.47 lakh crore in July 2025 and have since risen to ₹37.92 lakh crore.

Among the 11 equity mutual fund categories, small-cap and flexi-cap funds continued to attract significant retail investor interest. Their combined AUM rose by 21% YoY to ₹10.29 lakh crore, according to AMFI data.

Apart from equity funds, debt funds have also attracted significant investor interest. In July 2026, these funds recorded a strong net inflow of ₹1.88 lakh crore, as investors diversified their portfolios beyond bank fixed deposits, taking total debt-fund AUM to ₹19.33 lakh crore.

Meanwhile, Gold ETFs continued to attract investor interest as investors sought to participate in gold's strong price performance over the past year. Their AUM more than doubled to ₹1.73 lakh crore.

Although inflows moderated in the latest month as investors became more selective amid valuation concerns and muted equity-market returns, equity-oriented schemes recorded their 65th consecutive month of positive inflows.

₹50 lakh crore AUM jump in just five years

Amid strong inflows into both equity and debt schemes, the total assets under management (AUM) of the mutual fund industry stood at ₹85.76 lakh crore in July 2026.

Just half a decade ago, the mutual fund industry's AUM stood at ₹35.31 lakh crore, indicating an addition of ₹50.45 lakh crore in just five years, according to AMFI data. Looking further back, the AUM of the Indian mutual fund industry has increased more than sixfold over the past decade.

The industry first crossed the ₹10 lakh crore milestone in May 2014, and in just about three years, its AUM more than doubled to ₹20 lakh crore by August 2017. It crossed ₹30 lakh crore in November 2020 and has since nearly tripled.

Meanwhile, equity mutual fund AUM has surged from ₹11.70 lakh crore to ₹38.36 lakh crore over the last five years, representing a remarkable 227% increase. Equity funds now account for around 45% of the overall mutual fund industry's AUM.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.