India’s mutual fund assets hit a historic ₹73.7 lakh crore in FY2025-26, driven by rising retail participation, increased SIPs, and broader product interest, signalling a shift towards mainstream household investing across urban and Tier-II centres.
India’s mutual fund industry ended FY2025-26 at a record scale, with assets under management climbing to ₹73.7 lakh crore, according to a report highlighted by Business Today. The increase of 12.2% from the previous year came alongside a further deepening of retail participation, as systematic investment plans, or SIPs, remained the main engine of growth.
SEBI data showed active SIP accounts rising to 10.45 crore by March 2026, while average monthly SIP contributions jumped 25.8% year on year to a record ₹16,413 crore. That steady flow of monthly money has given fund houses a more predictable domestic funding base and helped markets absorb bouts of global volatility more easily than in earlier cycles.
The industry’s expansion was not limited to India’s biggest cities. SEBI said participation from Tier-II and Tier-III centres continued to rise through the year, suggesting that mutual funds are becoming a mainstream savings vehicle well beyond the metros. The trend points to a broader shift in household investing, with more savers moving from episodic lump-sum bets towards regular, automated contributions.
Investor appetite also widened across product categories. Passive funds, including exchange-traded funds and index funds, kept attracting interest, while gold ETFs drew sharply higher inflows as geopolitical uncertainty encouraged a search for safer assets. According to the report, gold ETF inflows were 4.6 times higher than a year earlier, underscoring how investors balanced equity exposure with defensive allocations.
Domestic institutions also played a larger stabilising role. SEBI said domestic institutional investors recorded historic net inflows of ₹8.5 lakh crore during FY2025-26, helping offset foreign portfolio outflows. In an environment where overseas money can move quickly, the growing weight of local savings has become increasingly important for market resilience and for the long-term development of India’s capital markets.
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