Indian Mutual Fund Industry Sees 14.1% Growth in Average AUM in Q2 FY27
The Indian mutual fund industrys average AUM rose to ₹89.51 lakh crore in Q2 FY27, reflecting strong investor participation and SIP inflows.
New Delhi, October 28 (Daily Kiran) : The average assets under management (AUM) of the Indian mutual fund industry reached ₹89.51 lakh crore during the second quarter of fiscal year 2027. This marks a quarterly increase of 4.9% and an impressive annual growth of 14.1%, according to a report released on Wednesday.
ICRA Analytics reported that despite a downturn in the markets, the AUM was recorded at ₹87.08 lakh crore in August 2026 and fell further to ₹82.64 lakh crore in September 2026. However, the AUM in September was still 9.3% higher compared to the same month last year, indicating the sector’s long-term growth trajectory driven by increasing retail investor participation and steady inflows into systematic investment plans (SIPs).
In the second quarter, net inflows stood at ₹1.44 lakh crore, although this was lower than the ₹2.05 lakh crore recorded in the previous quarter. The decline was primarily due to significant outflows from debt-oriented schemes and a large withdrawal in September 2026.
Equity-oriented schemes remained the backbone of growth, attracting a net inflow of ₹92,293 crore during the quarter, while hybrid schemes experienced slower inflow rates. Debt-oriented schemes saw a net outflow of ₹5,853 crore, reflecting investors’ shifting interest towards equity-linked products amid changing market conditions.
The report emphasized that the continuous expansion of the investor base and robust inflows into equities affirm a positive and strong growth outlook for the Indian mutual fund industry, despite short-term market fluctuations.
Investor participation remained strong, with the total number of mutual fund folios rising to 28.62 crore by September 2026. Additionally, investments through SIPs reached an all-time high of ₹32,490 crore. There was also a notable increase of 63.26 lakh in the number of new SIP accounts during September 2026. The market share among the top ten asset management companies remained largely stable between the first and second quarters of fiscal year 2027.
