The Indian mutual fund industry continues to see retail participation, as total assets under management (AUM) reached Rs 82.2 lakh crore by mid-2026. This growth is driven by a surge in Systematic Investment Plan (SIP) contributions, which hit a record Rs 31,781 crore in June 2026, alongside a sharp recovery in gold exchange-traded fund (ETF) inflows and sustained demand for active equity and hybrid investment strategies.
Record Growth in SIP Contributions and Retail Participation
Retail investor sentiment remains strong, as evidenced by the consistent growth in SIP accounts and assets. According to industry data, the number of outstanding SIP accounts climbed to 10.52 crore by the end of June 2026. This influx of capital has pushed total SIP AUM to Rs 17.70 lakh crore.
Active equity mutual funds remain a primary vehicle for this retail capital, recording gross inflows of Rs 67,601 crore in June, up from Rs 57,604 crore in May. Net inflows into active equity funds totaled Rs 28,973 crore for the month, signaling that investors are prioritizing long-term wealth creation despite ongoing market volatility.
Hybrid Funds and Gold ETFs See Renewed Demand
Hybrid funds, which provide a blend of equity and debt exposure, have become a focal point for investors looking to balance risk. Excluding arbitrage funds, the category attracted net inflows of Rs 7,163 crore in June, a significant increase from the Rs 4,862 crore recorded in May.
Gold ETFs experienced a notable reversal in investor behavior. After recording net outflows of Rs 725 crore in May, the category saw a sharp turnaround with net inflows of Rs 3,443 crore in June. This shift highlights a return to gold as a hedge against market uncertainty, aligning with broader trends in commodity-linked investment products.
Performance of Specialized Investment Funds (SIFs)
Specialized Investment Funds (SIFs) have maintained strong momentum, with total AUM rising 29% month-on-month to reach Rs 17,858 crore in June 2026. Total inflows into the SIF segment jumped 171% to Rs 3,782 crore, up from Rs 1,396 crore in the previous month.
Hybrid Long-Short Funds represent a large share of the SIF market, accounting for 67% of total AUM at Rs 11,910 crore. This category has been a consistent driver of growth, attracting Rs 2,043 crore in inflows during June alone—a 189% increase from May’s Rs 707 crore. Since October 2024, Hybrid Long-Short Funds have secured Rs 11,568 crore, representing 66% of all cumulative SIF inflows.
Equity-Oriented Investment Strategies account for the remaining 28% of SIF AUM, totaling Rs 5,036 crore. This segment recorded Rs 1,097 crore in inflows during June, reflecting a 68% increase over the Rs 652 crore recorded in May.
Comparison of Investment Strategy AUM (June 2026)
| Strategy Type | AUM (Rs Crore) | Share of Total SIF AUM |
|---|---|---|
| Hybrid Investment Strategies | 12,822 | 72% |
| Equity-Oriented Strategies | 5,036 | 28% |
| Total SIF AUM | 17,858 | 100% |
Source: ValueMetrics Mutual Fund & SIF Flow Meter (July 2026).
As of June 30, 2026, the average folio size across all SIFs stood at Rs 23.8 lakh, with Hybrid Investment Strategies averaging Rs 32.7 lakh per folio and Equity-Oriented Strategies averaging Rs 14.1 lakh. With cumulative inflows into SIFs reaching Rs 17,407 crore since October 2024, the segment continues to solidify its role in the diversified portfolios of investors.
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