Mutual fund SIP flows hit two-year high at 43% of gross equity flows; 12-month flows rise 17% YoY: Report

The Indian mutual fund industry's assets under management (AUM) through systematic investment plans (SIPs) rose 23% year-on-year (YoY) to Rs 18.62 lakh crore in August 2026, supported by sustained SIP flows and growth in the number of SIP accounts, according to the latest Franklin Templeton India Mutual Fund report.

The report further highlighted that SIP flows as a share of gross equity flows also reached a two-year high of 43%, up from 24% in August 2024, and the aggregate SIP flows for the 12-month period ended August 2026 grew 17% YoY to Rs 3.7 lakh crore.

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The monthly gross SIP sales increased 14% YoY to Rs 32,297 crore in August 2026, while the number of SIP accounts rose 12.1% YoY to 10.75 crore.

Strong SIP flows have increased the contribution of systematic investing to equity mutual funds. SIP AUM as a share of equity AUM rose to a two-year high of 30.7% in August 2026, compared with 27.4% in August 2024.

Total SIP AUM stood at Rs 18.62 lakh crore, up 23% year-on-year, while monthly SIP gross sales rose 14% year-on-year to Rs 32,297 crore.

The total SIP accounts were recorded at 10.75 crore, up 12.1% compared to the same period a year ago. The SIP share of equity AUM was recorded at 30.7% in August 2026 compared to 27.4% in August 2024. The monthly SIP flows doubled in less than three years, from Rs 19,187 crore to Rs 32,297 crore.

The overall mutual fund industry AUM grew 15.8% YoY in August 2026. Equity and hybrid fund AUM grew faster at 18.5%. Passive fund AUM increased 27.2%, while Gold ETF and Silver ETF AUM rose 2.6 times and 3.3 times, respectively, over the same period.

August 2026 also recorded the highest monthly collection from new fund offers (NFOs) in the preceding 11 months at Rs 7,110 crore.

Among equity fund categories, Flexi-cap funds saw the highest net sales of Rs 89,087 crore during the 12 months ended August 2026, followed by small-cap funds at Rs 62,331 crore and mid-cap funds at Rs 61,016 crore.

Multi-cap funds recorded net sales of Rs 33,815 crore, while sectoral and thematic funds garnered Rs 19,234 crore over the one year period.

Among debt schemes, liquid funds led with net sales of Rs 1,48,876 crore for the 12 months ended August 26, according to the Franklin Templeton India MF report.

Sectoral debt funds and credit risk funds recorded net sales of Rs 583 crore and Rs 557 crore, respectively, over the same period. All other debt fund categories recorded net outflows during the period.

Within hybrid funds, multi-asset allocation funds led with net sales of Rs 68,519 crore, followed by arbitrage funds at Rs 27,188 crore and balanced/aggressive hybrid funds at Rs 19,554 crore for the 12 months ended August 26. ETFs recorded net sales of Rs 1,16,997 crore over the same period.

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SIFs

Specialised Investment Funds (SIFs) recorded sharp growth, with their AUM increasing 15 times in 11 months to Rs 31,175 crore in August 2026. The growth was supported by positive net flows and an eight-fold increase in the number of schemes.

Among states, New Delhi recorded the fastest average AUM growth over the 12 months ended August 2026 at 37.85%, followed by Telangana at 19.19% and Rajasthan at 15.44%.

The report also highlights the increasing contribution of asset management companies outside the top 10. Their share of industry AUM rose from 17.3% in December 2018 to 24.3% in June 2026, pointing to a broadening competitive landscape within India's mutual fund industry.

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