New Delhi, Oct 28 — India's mutual fund industry remained resilient in the second quarter of FY27 despite heightened market volatility, with quarterly average assets under management (QAAUM) rising 4.9 per cent sequentially, and 14.1 per cent year-on-year, to Rs 89.51 lakh crore, a report said on Wednesday.
The report from ICRA Analytics said that month-end industry AUM, however, declined from a record Rs 87.08 lakh crore in August 2026 to Rs 82.64 lakh crore in September 2026, primarily due to mark-to-market losses arising from market corrections.
Despite the monthly decline, September AUM was 9.3 per cent higher than the previous year, underscoring the sector's long-term growth trajectory driven by rising retail participation and sustained systematic investment plan (SIP) inflows.
Net inflows remained positive at Rs 1.44 lakh crore in Q2FY27, although lower than Rs 2.05 lakh crore in the preceding quarter. The moderation was primarily attributable to outflows from debt-oriented schemes and significant September 2026 outflows.
Equity-oriented schemes continued to be the key growth driver, attracting Rs 92,293 crore of quarterly net inflows, while hybrid schemes witnessed slower inflows. Debt-oriented schemes recorded net outflows of Rs 5,853 crore, highlighting investor preference for equity-linked products amid evolving market conditions.
“The continued expansion in investor base, coupled with healthy equity inflows, reinforces the structural growth outlook for the Indian mutual fund industry despite short-term market fluctuations,” the report said.
Investor participation remained robust, with total mutual fund folios increasing to 28.62 crore in September 2026, while the contribution through systematic investment plans (SIPs) touched a fresh all-time high of Rs 32,490 crore.
The number of new SIP accounts increased by 63.26 lakh in September 2026. Top ten asset management companies maintained broadly stable market shares between Q1FY27 and Q2FY27, the report noted.