Indian Equity Mutual Funds Experience 17.38% AUM Growth in March
Synopsis
In March, equity-oriented mutual funds in India recorded a striking 17.38% YoY rise in average assets under management, driven by robust investments in flexi Cap and mid Cap funds, as detailed in a recent report.
Key Takeaways
17.38% YoY growth in equity mutual funds' AUM.
Flexi Cap Funds are the top-performing category.
Investors are favoring dynamic allocation strategies .
Mid and Small Cap funds are on the rise.
Shift towards performance-oriented investments .
New Delhi, April 16 (NationPress) Equity-focused mutual funds have experienced a remarkable 17.38% year-on-year (YoY) growth in average assets under management for March, fueled by significant investments in flexi Cap, mid Cap, and thematic funds, according to a report released on Thursday.
The analysis by Abakkus Mutual Fund revealed that flexi Cap Funds stood out as the largest and most rapidly expanding category, with average net AUM climbing to approximately Rs. 5.28 lakh crore, up from Rs. 4.22 lakh crore the previous year, marking a 25.10% YoY increase.
This flexi Cap Funds segment now holds a 15.75% share of the total equity AAUM of equity-oriented schemes.
The total average net AUM for equity-oriented schemes rose to around Rs. 33.54 lakh crore in March 2026, a jump from Rs. 28.57 lakh crore a year prior, reflecting ongoing retail engagement and resilience in equity markets despite sporadic volatility, the report noted.
The significant growth in flexi Cap funds underscores a clear investor preference for a dynamic equity allocation strategy, offering fund managers the flexibility to adjust across market capitalizations, sectors, and styles amidst a changing macroeconomic landscape.
The mutual fund sector exhibited widespread gains, with mid Cap funds increasing by 22.74% to about Rs. 4.38 lakh crore, small cap funds rising by 20.33% to Rs. 3.47 lakh crore, and Large & Mid Cap Funds soaring by 23.39% to Rs. 3.14 lakh crore.
Sectoral or Thematic Funds remained among the top categories with an average net AUM of around Rs 5.01 lakh crore, although their share slightly decreased to 14.93% from 15.52% in March, indicating a slight cooling in concentrated thematic investments.
“Flexi Cap Funds provide the agility required in today’s dynamic market conditions, a flexibility that has resonated well with investors navigating the evolving macro environment,” stated Vaibhav Chugh, CEO of Abakkus Mutual Fund.
Moreover, ongoing inflows into Mid and Small Cap funds suggest a strong appetite for opportunities to generate alpha, he added.
Conversely, the relatively modest growth in Large Cap Funds and ELSS categories signifies a clear shift in investor focus towards more flexible, performance-oriented investment strategies, Chugh concluded.
aar/pk
Point of View
With a clear shift towards flexibility and performance-oriented strategies. As market dynamics change, the resilience displayed by these funds amidst volatility signals robust retail participation, indicative of a healthy investment climate.
NationPress
5 Jul 2026
Frequently Asked Questions
What caused the growth in equity mutual funds in March?
The growth was primarily driven by strong inflows into flexi Cap, mid Cap, and thematic funds.
What is the current AUM of flexi Cap funds?
Flexi Cap funds recorded an average net AUM of approximately Rs. 5.28 lakh crore.
How does the flexi Cap funds category compare to others?
Flexi Cap funds are the largest and fastest-growing category, holding a 15.75% share of total equity AAUM.
What trends are visible in mid and small cap funds?
Mid Cap funds grew by 22.74% and Small Cap funds by 20.33%, indicating a strong appetite for alpha generation opportunities.
What does the growth in thematic funds suggest?
The slight moderation in thematic funds' share indicates a cooling in concentrated thematic allocations.
