Equity mutual fund assets reached an all-time high of ₹48.5 lakh crore in July 2026, supported by steady SIP contributions of ₹31,961 crore. Despite strong investment flows, net inflows into equity funds dipped slightly as higher redemptions were recorded during the month.
The Indian mutual fund industry hit a significant milestone in July 2026, with total assets under management reaching ₹85.76 lakh crore. Within this, equity-oriented mutual fund assets climbed to a record high of ₹48.5 lakh crore, accounting for 56% of the industry's total average assets.
Investor participation remains a primary engine for this growth, particularly through Systematic Investment Plans (SIPs). In July, monthly SIP contributions stood at ₹31,961 crore. This marks the fifth consecutive month that contributions have remained above the ₹30,000 crore level, demonstrating that long-term retail investors are continuing their monthly investments despite broader market volatility.
However, while gross investments remain high, the net inflow into equity schemes showed a different trend. Net inflows into equity funds were recorded at ₹24,697 crore in July, representing a decline of approximately 15% compared to the previous month. This moderation is largely attributed to an increase in redemptions, where investors chose to take profits or rebalance their portfolios as the stock market moved.
Flexi-cap funds continue to be the preferred choice for many investors, holding the largest share of equity assets at 15.6%. These are followed by thematic funds at 14.6%, mid-cap funds at 13.6%, and small-cap funds at 11.5%. Together, these categories represent more than half of the total equity assets, reflecting a diversified approach among mutual fund participants.
Passive funds, which aim to replicate market indices rather than relying on active stock selection by managers, also saw significant growth. The assets in passive funds rose to ₹15.5 lakh crore, reflecting a 23.3% increase compared to the previous year. Equity passive funds constitute the majority of this segment, accounting for nearly 68% of total passive assets.
Looking ahead, investors may track whether the trend of higher redemptions continues in the coming months. While SIP contributions provide a stable base, market volatility often triggers higher selling activity as investors seek to exit or adjust their holdings. The performance of equity assets will remain sensitive to broader stock market fluctuations, and ongoing adjustments to portfolios, including regulatory changes like the introduction of new scheme categories, will be factors for market participants to watch.