India's mutual fund industry achieved the fastest global AUM growth in five years, with net AUM rising 17 per cent between December 2020 and December 2025, significantly outpacing global mutual funds which recorded 7 per cent growth, according to the AMFI and Crisil Factbook 2026 'Resilient run' report. This performance was driven by steady inflows and bullish equity markets, with India's global market share increasing from 0.64 per cent to 1.01 per cent. As per Sundeep Sikka, Chairman of Association of Mutual Funds in India, India continues to stand out as a bright spot in the global asset management landscape amid higher interest rates and geopolitical dynamics affecting mature markets.
Equity mutual fund assets reached a fresh record of ₹48.5 lakh crore in July 2026, according to the NSE Market Pulse report for August. The equity segment now accounts for 56 per cent of the mutual fund industry's overall Average Assets Under Management (AAUM), demonstrating the continued dominance of equity-oriented investments. As reported by NSE, active equity schemes registered 13.3 per cent year-on-year growth and their share of total equity AUM reached nearly 78 per cent, while their share of the overall mutual fund industry's AAUM also reached 44 per cent. The report noted that equity AUM had risen steadily after moderating in March 2026, highlighting the sustained growth momentum in the segment.
The number of unique mutual fund investors increased dramatically from 2.3 crore in March 2021 to 6.1 crore in March 2026, representing a growth of nearly 2.7 times, as reported by AMFI. This expansion indicates that the industry's growth is increasingly supported by wider household participation rather than just market appreciation. While corporates remained the largest segment, their share moderated from 41 per cent in March 2021 to 37 per cent in March 2026, reflecting faster expansion in individual participation. The retail segment's share increased sharply until March 2024, supported by sustained SIP adoption, improving digital access, and deeper penetration of mutual funds across households.
Monthly SIP contributions stood at ₹31,961 crore in July, remaining above ₹30,000 crore for the fifth consecutive month, as reported by NSE. Cumulative SIP contributions in the first four months of FY27 reached ₹1.3 lakh crore, up 15.4 per cent year-on-year. SIP assets crossed ₹18 lakh crore for the first time, reaching ₹18.2 lakh crore in July and accounting for 21.1 per cent of the mutual fund industry's overall assets, reflecting the sustained pace of investor participation. The rising formalisation of household finance, wider SIP-led retail participation, and growing awareness have collectively expanded the industry's asset-gathering capacity beyond cyclical market support.
Passive funds also reached a fresh record with AAUM rising to ₹15.5 lakh crore, up 23.3 per cent year-on-year, according to the NSE report. Equity passive funds accounted for nearly 68 per cent of passive assets, while gold and silver ETFs also recorded strong growth. In contrast, debt fund AAUM declined 0.4 per cent year-on-year to ₹21.7 lakh crore, mainly due to a sharp contraction in passive debt funds, while active debt assets remained broadly subdued. With equity AUM, SIP assets and passive funds all at record levels, the report's July data points to continued expansion of the mutual fund industry's equity-oriented segment, while debt assets remain comparatively subdued.
