Equity Mutual Fund AUM Hits Record ₹48.5 Lakh Crore in July, Driven by Steady SIP Inflows: NSE Report

NEW DELHI — Equity mutual fund assets rose to a fresh record of ₹48.5 lakh crore in July, accounting for 56 per cent of the mutual fund industry's overall Average Assets Under Management (AAUM). According to the National Stock Exchange (NSE) Market Pulse report for August, active equity schemes continued to register strong growth after moderating in March 2026.

Active equity schemes recorded a 13.3 per cent year-on-year growth, accounting for nearly 78 per cent of total equity AUM and reaching 44 per cent of the overall mutual fund industry's AAUM. Within open-ended equity schemes, flexi-cap funds held the largest share of assets at 15.6 per cent. They were followed by thematic funds at 14.6 per cent, mid-cap funds at 13.6 per cent, and small-cap funds at 11.5 per cent. Together, these four categories represented more than 55 per cent of equity AUM.

Retail and institutional investor participation remained strong through systematic investment plans (SIPs). Monthly SIP contributions stood at ₹31,961 crore in July, staying above the ₹30,000 crore threshold for the fifth straight month. Cumulative SIP contributions for the first four months of fiscal year 2027 reached ₹1.3 lakh crore, marking a 15.4 per cent increase compared to the previous year.

Consequently, SIP assets crossed ₹18 lakh crore for the first time, closing at ₹18.2 lakh crore in July. This figure accounts for 21.1 per cent of the total mutual fund industry assets, reflecting sustained retail participation.

Passive funds also reached new highs, with AAUM increasing to ₹15.5 lakh crore, up 23.3 per cent year-on-year. Equity passive funds made up nearly 68 per cent of passive assets, alongside notable growth in gold and silver exchange-traded funds (ETFs).

In contrast to the expansion seen in equity and passive segments, debt fund AAUM contracted by 0.4 per cent year-on-year to ₹21.7 lakh crore. This decline was primarily driven by a sharp contraction in passive debt funds, while active debt assets remained broadly subdued.

"The steady rise in equity mutual fund assets and consistent SIP inflows reflect a structural shift in domestic capital participation. Surpassing ₹48.5 lakh crore in equity AUM alongside consecutive months of over ₹30,000 crore in monthly SIP contributions demonstrates long-term retail commitment to capital markets. For the broader entrepreneurial and business ecosystem, this deepening domestic capital pool offers a stable foundation for economic activity and investment, even as debt segments remain subdued." — Dr. Shishir Gupta, Founder & CEO, StartupLanes