Equity mutual funds AUM rises 17.38 per cent in March on strong inflows
Equity-oriented mutual funds recorded a 17.38 per cent rise in average AUM in March, led by strong inflows into flexi cap, mid cap and thematic funds. Investors showed a clear preference for flexible strategies amid evolving market conditions
New Delhi: Equity‑oriented mutual funds saw a robust 17.38 per cent year‑on‑year (YoY) increase in average assets under management in March, driven by strong flows into flexi Cap, mid Cap and thematic funds, a report said on Thursday.
The report from Abakkus Mutual Fund said that flexi Cap Funds emerged as the largest and fastest‑growing category, with average net AUM rising to around Rs. 5.28 lakh crore, compared to Rs 4.22 lakh crore a year ago, registering a 25.10 per cent year‑on‑year growth.
Flexi Cap Funds category now commands a 15.75 per cent share of total equity AAUM total average net AUM of equity‑oriented schemes.
The total average net AUM of equity-oriented schemes rose to about Rs. 33.54 lakh crore in March 2026 from around Rs. 28.57 lakh crore a year earlier, reflecting sustained retail participation and resilience in equity markets despite intermittent volatility, the report added.
Strong expansion of flexi cap funds highlighted a clear investor preference for dynamic equity allocation strategy which offers fund managers the flexibility to navigate across market capitalisations, sectors and styles in an evolving macro-economic environment.
The mutual fund industry showed broad‑based gains as mid cap funds grew 22.74 per cent to about Rs. 4.38 lakh crore, small cap funds rose 20.33 per cent to Rs. 3.47 lakh crore, and Large & Mid Cap Funds surged 23.39 per cent to Rs. 3.14 lakh crore.
Sectoral or Thematic Funds remained among the largest categories with an average net AUM of roughly Rs 5.01 lakh crore, though their share moderated slightly to 14.93 per cent from 15.52 per cent in March, indicating some cooling in concentrated thematic allocations.
“Flexi Cap Funds offer agility, which is much needed in today’s dynamic market conditions, a flexibility that has resonated well with investors navigating today’s evolving macro environment,” said Vaibhav Chugh, CEO, Abakkus Mutual Fund.
Meanwhile, sustained flows into Mid and Small Cap funds indicate a strong appetite for alpha generation opportunities, he said.
In contrast, the relatively modest growth in Large Cap Funds and ELSS categories highlights a clear shift in investor priorities towards more flexible, performance oriented – investment strategies, Chugh added.
