Mutual Fund AUM Rises 4.9% to Record ₹87.2 Lakh Crore in Q2

India's mutual fund industry grew its quarterly average assets under management 4.9% to a record ₹87.2 lakh crore in July-September 2026, AMFI data showed, as steady inflows offset volatility in equity markets.

The Growth in Numbers

The Indian mutual fund industry's quarterly average assets under management, or QAAUM, rose to ₹87.2 lakh crore in the second quarter of FY27 from ₹83.1 lakh crore in the first quarter, according to data from the Association of Mutual Funds in India (AMFI). One lakh crore equals one trillion rupees, so the figure is also reported as ₹87.2 trillion. The increase of about ₹4.1 lakh crore works out to 4.9% quarter-on-quarter and was the strongest quarterly growth in three quarters.

Among individual fund houses, Invesco, Motilal Oswal and HSBC each logged quarter-on-quarter growth of more than 10%, while SBI Mutual Fund added ₹53,146 crore, according to Business Standard's analysis of the data.

Why Assets Grew While Parts of the Market Weakened

The growth came despite equity market volatility and a correction in large-cap stocks. Timing helped. The sharp fall in large caps happened mainly in the last two weeks of September, while July had been positive, so the average for the full quarter was cushioned.

Sunil Subramaniam, founder and chief executive of Sense and Simplicity, explained the mechanism. Systematic investment plan, or SIP, collections arrive through the month, so they keep adding to average assets even when prices are falling. SIPs account for the bulk of equity inflows, he said, and corporate cash parked in short-term debt funds also supported the average.

Flow data for the first two months of the quarter support that view. In July and August, investors put a net ₹54,000 crore into active equity schemes. Across all categories, net inflows over the two months were ₹2.8 trillion, and debt funds drew the largest share.

What AMFI's July Data Showed

AMFI's monthly report for July 2026 gives a closer view of how money moved at the start of the quarter.

1. Month-end assets under management on July 31, 2026: ₹85.76 lakh crore
2. Average AUM for July: ₹86.34 lakh crore
3. Equity-oriented scheme mobilisation: ₹69,522.25 crore
4. Equity-oriented scheme redemptions: ₹44,824.86 crore
5. Net inflow into equity-oriented schemes: ₹24,697.39 crore
6. Net inflow across all categories: ₹2.36 lakh crore

Those figures show that equity schemes continued to attract more money than they lost in July, with mobilisation exceeding redemptions by about ₹24,697 crore. Total net inflow across categories was larger because debt and other schemes added money as well.

Average AUM Versus Month-End AUM

The two ways of measuring industry assets answer different questions. Average AUM is the daily average of assets over a period, which smooths out sharp swings. Month-end AUM is the value on the last day of the month, and it captures the full effect of any late-period rise or fall.

July shows the gap. The daily average for the month, at ₹86.34 lakh crore, sat about ₹58,141 crore above the month-end figure of ₹85.76 lakh crore. BW Businessworld noted that the impact of the September correction on quarterly AUM was limited because the sharp decline in large caps came only in the last two weeks of the month.

BW Businessworld also noted that September data were still pending when the quarterly figures came out. The final Q2 asset and inflow numbers, which AMFI publishes in its monthly report, will give a clearer picture of whether steady investor contributions can keep offsetting market volatility.

What to Watch in AMFI's Next Release

The September report will show month-end assets after the late-quarter correction, along with SIP contributions and flows into equity, debt and other categories. Those numbers will show whether SIP flows and corporate money in short-term debt funds, which Subramaniam credited with supporting average assets, held up after the correction.

A record quarterly average does not mean every fund gained value. Industry assets combine investor inflows with changes in the market value of holdings, so a fund's own net asset value can rise or fall regardless of how the industry total moves. The gain in QAAUM tells readers about the size and inflows of the industry, not about the return of any individual scheme.