Equity Mutual Funds’ AAUM Surges 17% in FY26; Flexi Cap Funds Lead Growth

Equity-Oriented Mutual Funds reported a 17.38% year-on-year increase in average assets under management (AAUM) in March 2026. Total equity AAUM stood at ₹33.54 lakh crore, compared with ₹28.57 lakh crore a year earlier, based on Abakkus Mutual Fund’s analysis of data sourced from the Association of Mutual Funds in India (AMFI). 

The increase comes despite intermittent market volatility during the year. Flows into equity schemes remained steady, supported by participation from retail investors. 

Flexi Cap Funds See Highest Growth 

Flexi cap funds recorded the strongest expansion among equity categories. Their average AUM rose to ₹5.28 lakh crore in March 2026 from ₹4.22 lakh crore a year earlier, a 25.10% increase. 

Their share in total equity AAUM rose to 15.75% from 14.77%, making them the largest category within equity-oriented schemes during the period. 

Mid and Small Caps Maintain Momentum 

Mid-cap funds reported a 22.74% increase in average AUM to ₹4.38 lakh crore, with their share rising to 13.05%. Small-cap funds grew 20.33% to ₹3.47 lakh crore, accounting for 10.35% of total AAUM. 

Sectoral and thematic funds remained among the largest segments, with AUM of ₹5.01 lakh crore. However, their share declined to 14.93% from 15.52% a year earlier. 

Large-Cap and Hybrid Categories Lag 

Large-cap funds grew at a slower pace, with AUM rising to ₹3.87 lakh crore. Their share declined to 11.55% from 12.21%, indicating reduced allocation to relatively stable segments. 

Large and mid-cap funds increased 23.39% to ₹3.14 lakh crore, maintaining a 9.37% share. Multi-cap funds rose 24.14% to ₹2.10 lakh crore, with their share at 6.27%. 

Limited Growth in Select Schemes 

ELSS funds recorded marginal growth of 1.99%, with AUM at ₹2.30 lakh crore. Their share declined to 6.85% over the period. 

Value and contra funds grew 14.20% to ₹2.04 lakh crore, holding a 6.08% share. Focused funds rose 16.99% to ₹1.64 lakh crore, while dividend yield funds remained the smallest category at ₹30,604 crore, contributing 0.91%. 

Read More: Mutual Funds Nearly Exit EaseMyTrip in March Quarter! 

Conclusion 

Equity mutual fund growth during FY26 was led by flexi cap, mid-cap and small-cap categories, while large-cap and ELSS segments saw comparatively slower expansion. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
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