Mutual Fund AUM hits ₹73.7 Lakh Crore as SIP Accounts Reach Record 10.45 Crore: SEBI report

India's mutual fund industry continued its rapid expansion in FY2025-26, with assets under management (AUM) reaching a record ₹73.7 lakh crore, driven by strong retail participation, rising systematic investment plan (SIP) inflows and growing investor interest from beyond the country's largest cities, according to SEBI's Annual Report 2025-26.

The report shows that average mutual fund AUM increased 12.2% year-on-year from ₹65.7 lakh crore in FY2024-25 to ₹73.7 lakh crore in FY2025-26. During the same period, the number of mutual fund investors rose 13.2% to 6.1 crore, reflecting continued participation by retail savers despite heightened market volatility and foreign investor outflows.

Retail investing

Systematic Investment Plans (SIPs) remained one of the strongest drivers of mutual fund growth during the year.

According to the report, the number of active SIP accounts increased to 10.45 crore by March 2026, while average monthly SIP contributions climbed 25.8% year-on-year to a record ₹16,413 crore. SEBI said the steady growth in SIPs reflects investors' increasing preference for disciplined, long-term investing through regular monthly contributions rather than lump-sum investments.

The continued rise in SIP inflows has also provided fund houses with a stable source of domestic capital, helping cushion markets during periods of global uncertainty.

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Growth beyond metros

The report highlights that the expansion of the mutual fund industry is no longer confined to India's major metropolitan centres.

SEBI noted that investor participation from Tier-II and Tier-III cities continued to increase during FY2025-26, broadening the industry's retail base. The growing geographical spread of investors suggests that mutual funds are increasingly becoming a mainstream savings and investment avenue across the country rather than remaining concentrated in urban markets.

Passive Funds and Gold ETFs

Investor preferences also continued to diversify during the year.

According to the report, passive investment products such as exchange-traded funds (ETFs) and index funds witnessed sustained growth, while Gold ETFs recorded a sharp increase in inflows amid global geopolitical uncertainty. Gold ETF inflows rose 4.6 times during FY2025-26 compared with the previous year, indicating stronger investor demand for safe-haven assets alongside traditional equity investments.

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Domestic investors

The growth of mutual funds also coincided with stronger participation by domestic institutional investors.

SEBI noted that domestic institutional investors recorded historic net inflows of ₹8.5 lakh crore during FY2025-26, helping offset net foreign portfolio investor outflows and supporting market stability. The regulator's data points to an increasingly important role for domestic savings in India's capital markets, with mutual funds continuing to channel household investments into equities and other financial assets.

The report suggests that rising SIP participation, expanding investor reach beyond metropolitan centres and sustained growth in mutual fund assets are strengthening the role of domestic investors in India's financial markets, making systematic investing an increasingly important pillar of the country's long-term savings ecosystem.

SEBI said the continued expansion of mutual funds and SIP investing reflects the growing role of domestic household savings in deepening India's capital markets and supporting long-term financial participation.

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