India's mutual fund industry reached a record ₹82.22 lakh crore in assets under management in June 2026, with individual investors holding a 61% share. Systematic Investment Plan (SIP) contributions also climbed to a new high of ₹31,781 crore, reflecting increased retail participation in equity and multi-asset funds.
Detailed Coverage
The Indian mutual fund industry hit a new milestone in June 2026, with total assets under management (AUM) climbing to ₹82.22 lakh crore. This growth of 10.5% compared to the previous year highlights the consistent expansion of the sector, which has maintained a compound annual growth rate of 20% over the last decade.
Individual investors have become the primary drivers of this growth, currently controlling 61% of total assets, up from 60% in May 2026. This trend marks a shift in how household savings are being allocated, with a clear preference for market-linked products over traditional savings instruments. Institutional investors currently hold the remaining 39% of the assets.
Record Inflows Through SIPs
Systematic Investment Plan (SIP) contributions reached an all-time peak of ₹31,781 crore in June 2026. This represents a 17% increase from the ₹27,269 crore recorded in June 2025. The rise in monthly contributions is supported by an expanding base of active SIP accounts, which grew 14.4% year-on-year to reach 10.52 crore. The average monthly investment per SIP account has also edged up to ₹3,022, indicating that retail investors are not only increasing in number but also raising their individual contribution amounts.
Asset Allocation Trends
Equity mutual funds continue to form the largest portion of the industry's holdings, with their AUM rising 11.5% to ₹37.38 lakh crore. Within this segment, mid-cap and small-cap schemes have emerged as favorites, attracting significant investor interest. Beyond pure equity, multi-asset allocation funds—which invest across equity, debt, and commodities—have gained traction, receiving ₹4,811 crore in inflows in June alone and bringing their total AUM to ₹1.96 lakh crore.
Precious metal ETFs have also seen a sharp rise in popularity. Gold ETF assets have more than doubled to ₹1.70 lakh crore, while silver ETFs have grown nearly four-fold to ₹0.79 lakh crore over the past year. This increased allocation toward gold and silver often reflects a strategy by investors to hedge against inflation and market volatility.
Expanding Reach Beyond Major Cities
Market participation is spreading beyond the country's top 30 cities, known as B30 cities. The share of these smaller towns in the overall industry AUM has risen to 19% as of June 2026, compared to 16% in late 2020. While Maharashtra remains the leading state for mutual fund assets, regions like New Delhi have shown significant momentum, recording the highest annual average AUM growth at nearly 40%. For investors, the next important monitorable will be the sustainability of these record-high SIP inflows, especially if market volatility increases, which could influence retail sentiment and the pace of fresh asset accumulation.