Retail Share of Mutual Fund Assets Falls to 59.5% as HNI Share Edges Up to 32.7%

Retail investors’ share of Mutual Fund (MF) Assets Under Management (AUM) fell for the second year running in March 2026, as per The Business Standard news report.  

Their share stood at 59.5%, down from 62.2% in March 2024, data from the Association of Mutual Funds in India (AMFI) showed. The fall came despite gross systematic investment plan (SIP) inflows continuing to rise.  

The weaker equity market reduced the value of retail holdings, with the effect more visible in portfolios exposed to mid- and small-cap stocks. 

Small-Cap Performance Stays Muted 

Small-cap stocks saw a volatile period between September 2024 and March 2026, following the market correction. The Nifty Smallcap 250 returned less than 1% over these two years, adding to the mark-to-market losses faced by investors. 

The picture was different in the previous two-year period. The Nifty 50 fell over 5%, the Smallcap 250 was broadly flat and the Midcap 150 gained 6%. Small- and mid-cap stocks have since seen a sharp recovery this year. 

HNIs Increase Share 

HNIs have been taking a larger share of MF assets, although the increase has been modest. Their share rose from 30.4% in March 2022 to 32.3% in March 2024 and 32.7% in March 2026. 

An account is classified as an HNI folio when it receives ₹2 lakh or more in a single transaction. Since HNI investments are much larger than retail transactions, a small increase in the number of HNI investors can make a sizeable difference to inflows. 

Passive Funds Show a Bigger Change 

The shift is more evident in passive funds. HNIs accounted for 19.9% of passive-fund AUM in March 2026, almost three times their 6.6% share five years earlier. 

Corporates continued to account for the largest share, but their portion fell from 78.4% to 69.6%. Retail investors’ share also dropped, from 13.4% to 9.1%. 

Gold and Silver Investments 

Gold and silver ETFs and funds of funds have also added to HNI participation in passive products. AUM of gold and silver ETFs reached ₹2.5 trillion in March 2026, up 17-fold from March 2021. 

Greater use of index funds and ETFs, along with gold and silver investments, has been cited as a factor behind the increase in HNI participation. 

Read More: Best Small Cap Mutual Funds in September 2026: Quant Small Cap and Others Based on 5-Year CAGR! 

Conclusion 

The share of retail investors in MF AUM has fallen over the past two years, while HNIs have increased their share. The change has been more pronounced in passive funds. 

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.  

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.