Mutual fund SIP flows double in nearly 3 years, investor accounts rise 12.5% YoY: Franklin Templeton India MF

Mutual fund SIP inflows stood at Rs 31,961 crore in July 2026, registering a 12% year-on-year growth. Monthly SIP inflows have doubled in less than three years, according to a release by Franklin Templeton India Mutual Fund.

The release further highlighted that the number of SIP accounts rose to 10.63 crore in July 2026, up 12.5% year-on-year. Meanwhile, the average SIP size declined marginally to Rs 3,007 per month from Rs 3,012 in July 2025.

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Flexicap funds attracted the largest amount of funds in the past 12 months at Rs 91,707 crore. This was followed by multi-asset allocation funds that saw inflows of Rs 68,375 crore in the last 12 months.

In the month of July, midcap funds saw inflows of Rs 6,192 crore, small cap funds saw inflows of Rs 7,768 crore.

Mumbai, Delhi and Bengaluru remained the top three cities contributing to industry AUM. Beyond the top 30 cities (B-30) recorded an AUM growth of 23% CAGR over the last 5 years, outpacing the 19% CAGR growth of top 30 cities. Maharashtra, Delhi and Karnataka were the top three states by AUM, while New Delhi and Karnataka saw the highest YoY growth in June 2026.

Equity funds’ AUM stood at Rs 38.40 lakh crore in July vs Rs 33.32 lakh crore, up 15.3% YoY. Passive Funds AUM stood at Rs 15.61 lakh crore vs Rs 12.48 lakh crore, up 25.1% YoY. International Passive Funds AUM stood at Rs 74,000 crore vs Rs 52,000 crore, up 43.5% YoY.

Equity funds have been net sales positive for over 5 years, with most equity categories witnessing positive net sales in July 2026. Passive AUM increased to Rs 15.15 lakh crore in July 2026 from Rs 12.18 lakh crore a year ago – a growth of 24%, with passive share at 18% of total AUM.

Passive mutual fund schemes comprised 37% of total mutual fund schemes in July 2026 vs 34% a year ago. Passive funds comprised 21% of domestic equity AUM, 9% of debt AUM and 51% of international funds AUM in July 2026. Passive fund folios have grown ~10x over the last 5 years as of July 2026.

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The Indian mutual fund industry’s AUM stood at an all-time high of Rs 85.8 lakh crore in the month of July. The industry has added over Rs 10.4 lakh crore to AUM over the past year. The industry’s AUM grew by 19% CAGR in the last 5 years & in the last 10 years, respectively, ending July 2026.

Global mutual fund industry trends

Worldwide assets of regulated open-end funds increased 17% YoY to USD 87 trillion in Q1 2026 from USD 75 trillion in Q1 2025. America had a share of 57% of global mutual fund assets in March 2026, followed by Europe at 31%, Africa and Asia Pacific at 12%. U.S mutual fund assets have more than doubled during the past decade to USD 49 trillion in June 2026, growing at a 10% CAGR.

The share of passively managed funds has more than doubled in the U.S from about 19% in 2016 to 54% in 2026.

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