Mutual Fund Industry AUM Rises Nearly 5% to ₹87.2 Lakh Crore in Q2 FY27

Key Takeaways

• Mutual fund quarterly average AUM increased to ₹87.2 lakh crore in the July-September 2026 quarter.
• Assets were up from ₹83.1 lakh crore in Q1 FY27, representing growth of nearly 5%.
• The industry recorded its strongest quarterly AUM growth in three quarters despite volatility in equity markets.

India's mutual fund industry expanded its asset base by more than ₹4 lakh crore during the September quarter, with quarterly average assets under management reaching ₹87.2 lakh crore.

The industry's QAAUM stood at ₹83.1 lakh crore during the preceding April-June quarter, implying growth of close to 5% quarter-on-quarter, according to Association of Mutual Funds in India data reported by Business Standard.

The latest increase was the industry's strongest quarterly growth in three quarters.

Inflows offset equity-market pressure

The expansion came despite volatility in domestic equities during the July-September period.

Equity-oriented schemes faced mark-to-market pressure as share prices corrected, particularly in parts of the large-cap segment. However, fresh investor flows into mutual fund schemes were sufficient to lift overall industry assets.

Debt funds and active equity schemes both contributed to the expansion.

Business Standard reported that debt-fund flows were supported largely by short-term institutional money, while systematic investment plan flows continued to support active equity schemes.

This distinction is important because changes in mutual fund assets can arise from two sources: fresh investor inflows or outflows, and movements in the market value of the securities already held by schemes.

During Q2 FY27, industry AUM increased even as parts of the equity market weakened, indicating that net flows played an important role in the quarter's asset growth.

₹4.1 lakh crore added during the quarter

The increase from ₹83.1 lakh crore to ₹87.2 lakh crore represents an absolute rise of approximately ₹4.1 lakh crore in quarterly average assets.

The numbers reinforce the continuing expansion of India's pooled-investment industry across equity, debt and other mutual fund categories.

Average quarterly AUM differs from month-end AUM because it measures average assets maintained during the quarter rather than assets on a single reporting date. It is also commonly used to compare the scale and market position of individual asset management companies.

The Q2 numbers show that industry asset growth remained resilient even during a quarter in which financial-market performance itself was uneven.