Passive Mutual Fund AUM Rises 7.6% to ₹15.19 Lakh Crore in April

Passive mutual funds maintained strong investor participation during April 2026, with total assets under management (AUM) rising 7.6% month-on-month to ₹15.19 lakh crore from ₹14.12 lakh crore in March, according to data released by Association of Mutual Funds in India (AMFI).

The category received net inflows of ₹20,082 crore during the month, supported by favourable market performance and mark-to-market gains of nearly ₹88,000 crore.

Index Fund Inflows Moderate

Despite continued investor interest in passive investment products, inflows into index funds witnessed moderation during April.

Index funds received inflows of ₹4,626 crore, marking a 43% decline compared to ₹8,169 crore recorded in March. The decline suggests some cooling in allocations after witnessing robust inflows in recent months.

Inflows into passive investment categories, including exchange-traded funds (ETFs) and index funds, also declined 35% month-on-month to ₹20,082 crore.

However, passive funds continue to remain popular among investors due to lower costs, diversification benefits, and increasing awareness about long-term investing strategies.

Hybrid Funds Witness Strong Recovery

Hybrid mutual funds registered a strong turnaround in April with inflows of ₹20,565 crore compared to an outflow of ₹16,538 crore in March.

Among hybrid categories, arbitrage funds emerged as the top contributor with inflows of ₹12,378 crore. Multi-asset allocation funds also attracted healthy investor participation during the month.

The strong recovery in hybrid funds reflects investor preference for balanced investment options amid market volatility and changing interest rate expectations.

Industry AUM Continues to Grow

The overall mutual fund industry continued to witness healthy growth during April. Total industry AUM increased 11% month-on-month to ₹81.71 lakh crore from ₹73.48 lakh crore in March.

The rise in AUM was supported by fresh inflows across several fund categories along with positive market performance.

Conclusion

Passive and hybrid mutual funds continued to attract strong investor interest in April despite moderation in index fund inflows. Rising industry AUM and steady participation across investment categories indicate growing awareness of diversified and long-term investment strategies among retail and institutional investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private 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.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.