Mutual Fund AUM Hits ₹82 Lakh Crore in Feb 2026

Industry AUM Reaches New Heights

India's mutual fund industry continued its robust growth trajectory, with assets under management (AUM) climbing to a new peak of ₹82.03 lakh crore in February 2026. This represents a significant 27.1% increase from the ₹64.53 lakh crore recorded in the same month a year prior, according to data from a Franklin Templeton report. The expansion, which added over ₹17.5 lakh crore to the industry's asset base in just twelve months, underscores a sustained shift in household savings towards market-linked financial instruments.

Equity and SIPs Fuel the Growth Engine

The primary drivers behind this impressive growth were sustained inflows into equity-oriented schemes and the unwavering participation of retail investors through Systematic Investment Plans (SIPs). Equity fund AUM saw a substantial 29.2% year-on-year jump, reaching ₹35.44 lakh crore. Hybrid funds also posted strong results, with their AUM rising by 30% to ₹11.71 lakh crore. Even fixed income funds, a more conservative category, grew by 13.5% to ₹19.65 lakh crore, indicating broad-based investor confidence across asset classes.

SIP Inflows Remain Resilient

SIPs have firmly established themselves as the backbone of retail investment in India. In February 2026, monthly gross SIP inflows stood at a healthy ₹29,845 crore. While this figure marked a slight dip from the record highs seen in December and January, it still represented a strong 15% year-on-year growth. The minor moderation was partly attributed to February being a shorter month. More importantly, the total AUM managed through SIPs reached a record high of ₹16.64 lakh crore, a 34% increase from the previous year. This highlights that investors are maintaining their long-term commitments, with SIP assets now constituting about 28.5% of the total equity AUM.

Passive Investing Gains Significant Traction

A notable trend within the industry is the accelerating adoption of passive investment products. The AUM for passive funds, which include index funds and ETFs, surged by an impressive 41.3% year-on-year to ₹15.24 lakh crore. Their share in the total industry AUM increased from 17% to 19% over the year. This growth was particularly pronounced in commodity-linked products. Gold fund AUM expanded dramatically to ₹1.83 lakh crore from ₹0.56 lakh crore, while silver fund AUM grew more than six-fold to ₹0.92 lakh crore, reflecting a strong investor appetite for portfolio diversification and hedging against market volatility.

Key Industry Metrics at a Glance

Expanding Investor Base

The industry's growth is not just in assets but also in participation. The number of unique investor accounts rose to 6.09 crore, with approximately 70 lakh new investors joining over the past year. The total number of SIP accounts reached 10.45 crore, with 65.72 lakh new accounts registered in February alone. This expansion is supported by an increasing number of asset management companies, which grew from 43 to 50 over the year, indicating a broadening and deepening of the market.

Long-Term Structural Shift

The recent figures are part of a larger, long-term trend. Over the last five years, the mutual fund industry's AUM has expanded at a compounded annual growth rate (CAGR) of about 21%. This growth significantly outpaces the 11% CAGR recorded in bank deposits over the same period. As a result, mutual fund assets are now equivalent to about 33% of total bank deposits, up from 29% a year earlier. This data clearly points to the ongoing financialisation of savings in the Indian economy, with individual investors, who account for around 60% of the total AUM, leading this change.

Analysis and Outlook

The consistent growth in AUM, driven by resilient SIP flows, signals a maturing investor base that is focused on disciplined, long-term wealth creation rather than short-term market timing. The stable SIP stoppage ratio of around 76% further reinforces this trend, showing that investors are sticking with their commitments despite market fluctuations. The rising popularity of passive funds and commodity ETFs suggests that investors are also becoming more sophisticated in their asset allocation strategies. Looking ahead, with increasing financial literacy and wider digital access, the Indian mutual fund industry is well-positioned to continue its growth, playing a crucial role in channeling household savings into the capital markets.