Passive AUM Surges Over 37% YoY in January 2026: Mutual Fund Industry AUM Stood at ₹81.01 Lakh crore

Passive assets under management (AUM) in India’s mutual fund sector rose 37.7% year-on-year to ₹15.02 lakh crore in January 2026, up from ₹10.91 lakh crore a year earlier, according to Franklin Templeton India Mutual Fund.

The share of passive strategies in total industry AUM increased to 19% in January 2026 from 12% in January 2022, reflecting the growing adoption of exchange-traded funds (ETFs) and index-based products among investors.

Overall industry AUM stood at ₹81.01 lakh crore at the end of January 2026. Over the past five years, the sector achieved a CAGR of 22%, and a 20% CAGR over the past decade. Equity-oriented AUM reached ₹58.02 lakh crore, up 20.6% year-on-year, while fixed income-oriented AUM rose to ₹23 lakh crore, growing 20.2%.

Retail Investors Dominate

Individual investors now account for 60% of total mutual fund AUM. Within equity-oriented schemes, 87% of assets come from individual investors, whereas institutional investors dominate liquid and money market schemes (89%), debt-oriented schemes (67%), and ETFs and fund-of-funds (84%).

Retail AUM has consistently outpaced industry growth over the long term. Over the past decade, individual investors’ AUM expanded nearly eightfold, compared with sixfold growth for the overall industry. Over five years, retail AUM grew at a 24% CAGR versus 22% for the industry; over 10 years, retail AUM grew at 23% CAGR compared with 20% for the industry. Unique investor accounts rose 12.8% year-on-year to 6.02 crore.

SIP Contributions Continue to Climb

Monthly Systematic Investment Plan (SIP) gross sales reached ₹31,002 crore in January, up 17% from ₹26,400 crore a year ago. SIP AUM increased 24% year-on-year to ₹16.36 lakh crore from ₹13.20 lakh crore.

The number of SIP accounts hit 10.29 crore, with the average monthly SIP ticket rising to ₹3,012 from ₹2,571 a year earlier. Monthly SIP contributions have doubled in under three years, highlighting growing retail participation.

Flexi-Cap Funds Lead Inflows

Most fund categories recorded positive flows in January, except equity-linked savings schemes (ELSS). Flexi-cap funds topped net sales over the past 12 months, attracting ₹82,954 crore in inflows, including ₹7,672 crore in January 2026 alone.

Also Read: SIP Calculator: Monthly Plan Needed to Build ₹5 Crore in 20 Years

Geographic Distribution Expands

The share of B15 cities in total AUM increased from 29% in December 2020 to 30% in December 2025, while B30 cities grew from 16% to 18%, with B30 AUM achieving a 24% CAGR versus 20% CAGR for the top 30 cities.

Among states, Maharashtra led with an average AUM of ₹33.69 lakh crore, followed by Delhi (₹6.44 lakh crore), Karnataka (₹5.66 lakh crore), and Gujarat (₹5.57 lakh crore). Rajasthan recorded 23.10% AUM growth over the past 12 months, slightly higher than Maharashtra’s 22.64%.

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