Markets set the hoofbeat: MFs run with the bulls to ₹72 trillion

Investor herd came charging back - AUM climbed 7% in Q1

The average assets under management (AUM) at domestic mutual funds (MFs) climbed 7 per cent to ₹72.1 trillion in the three months ending June 2025, snapping two quarters of near-stagnant growth. The uptick was largely driven by a rebound in the equities market.

 

The benchmark Nifty index gained nearly 5 per cent in the April–June quarter (Q1) of 2025–26 (FY26), while broader indices delivered even stronger returns.

 

Equity assets make up around 55 per cent of the MF industry’s AUM, tying its growth closely to market performance. 

 

Investor sentiment — and fund flows — also tend to rise with the markets. Equity MFs saw net inflows of ₹43,282 crore in the first two months of FY26. June data is expected soon.

 

The top 10 fund houses reported AUM growth broadly in line with the industry average in Q1.

 

SBI MF, the country’s largest asset manager, saw its AUM rise 6.4 per cent to ₹11.45 trillion. ICICI Prudential MF, which is preparing for a public listing, reported a 7.5 per cent increase to ₹9.84 trillion. HDFC MF, the largest listed fund house, logged a 7.22 per cent rise to ₹8.37 trillion. Nippon India MF beat the pack, growing its AUM 10 per cent to ₹6.18 trillion.