The Indian mutual fund sector is experiencing significant trends, including a structural shift in investor preference towards mid and small caps, sectoral themes, and multi-asset funds. Large caps are losing market share, with mid caps surpassing large caps for the first time, reaching 1.14 times their size by March 2026. Sectoral and thematic assets under management (AUM) have grown nearly fivefold from ₹98,080 Crore in March 2021 to ₹4,77,309 Crore in March 2026.
Monthly SIP inflows reached ₹32,087 Crore in March 2026, marking a decade-long structural shift in savings behavior. The total SIP inflows for FY 2025-26 stood at ₹3,49,589 Crore, up 21% from the previous fiscal year. Meanwhile, overseas Fund of Funds AUM increased from ₹25,031 Crore in March 2025 to ₹38,287 Crore in March 2026, reflecting a recovery in global market interest.
The total equity AUM more than doubled from ₹15,17,082 Crore in March 2023 to ₹31,97,698 Crore by March 2026, although large caps lost 4.1 percentage points of equity AUM share during this period.
