Mutual Fund Industry Quarterly Average AUM Rises 5% to ₹87.2 Lakh Crore in Q2FY27

Key Takeaways:

• India's mutual fund industry reported quarterly average assets under management of ₹87.2 lakh crore for July–September 2026. 
• Quarterly average AUM increased by approximately ₹4.1 lakh crore, representing growth of nearly 5% over the previous quarter. 
• Debt fund subscriptions and continued equity mutual fund inflows contributed to asset growth despite weakness in parts of the equity market. 

Industry Assets Increase by ₹4.1 Lakh Crore 

India's mutual funds recorded quarterly average assets under management (QAAUM) of ₹87.2 lakh crore during the second quarter of financial year 2026–27. 

The figure compares with ₹83.1 lakh crore in the April–June quarter, according to data released by the Association of Mutual Funds in India (AMFI). 

The increase of approximately ₹4.1 lakh crore represents quarterly growth of nearly 5%. 

Business Standard reported that this was the industry's strongest quarterly growth rate in three quarters, despite volatility in equity markets during July–September. 

Inflows Support Growth During Market Volatility 

Mutual fund asset growth reflects a combination of investor subscriptions, redemptions and changes in the market value of underlying securities. 

During the first two months of the September quarter, active equity mutual fund schemes received approximately ₹54,000 crore in net inflows. 

Across mutual fund categories, net inflows totalled around ₹2.8 lakh crore during July and August, with Debt mutual funds accounting for the largest portion. 

These figures cover the first two months of the quarter. September's monthly flow data had not yet been released when the quarterly AUM figures were reported. 

Consequently, the two-month inflow figures should not be interpreted as the total net inflows for Q2FY27. 

Debt and Equity Categories Contribute Differently 

Debt mutual funds recorded substantial subscriptions during July and August, including investments associated with short-term institutional liquidity requirements. 

Equity schemes continued to receive inflows even as several market segments experienced corrections. 

Systematic investment plans (SIPs) remained an important channel for recurring equity fund investments. 

Hybrid and passive funds also received inflows during the first two months of the quarter, with each group attracting approximately ₹10,000 crore, according to the reported figures. 

The category-level numbers illustrate how different mutual fund segments contributed to the industry's overall asset base. 

Understanding Quarterly Average AUM 

Quarterly average AUM differs from the assets reported on the final day of a quarter. 

QAAUM measures average assets over the reporting period, while month-end or quarter-end AUM represents assets at a specific point in time. 

The distinction matters when comparing industry growth with changes in equity indices or monthly investment flows. 

For example, market declines near the end of a quarter may have a different effect on average assets than on closing-date asset values. 

Industry Growth in Context 

The rise to ₹87.2 lakh crore indicates that the industry's average asset base expanded during the September quarter. 

The data does not establish that all categories or fund houses recorded growth. Individual schemes may have experienced redemptions or declines in portfolio valuations. 

The figures provide an industry-wide measure of assets managed during the quarter and will be supplemented by the subsequent release of September's monthly flow statistics.