The mutual fund industry witnessed a decline in March 2026, with Average AUM falling to ₹79.46 lakh crore from ₹83.42 lakh crore in February, impacted by net outflows of ₹2.40 lakh crore, largely driven by significant debt outflows and equity market correction.
Equity-oriented mutual fund inflows rose sharply to ₹40,450 crore, reaching an 8-month high, reflecting continued investor interest despite volatile market conditions. Among equity schemes, flexi-cap funds remained the top inflow category, while mid-cap funds, flexi-cap funds and large & mid-cap funds saw record high ever inflows, reflecting strong preference for diversified and growth-oriented strategies.
Passive fund inflows surged to ₹30,768 crore, driven by strong contributions from index funds and other ETFs, while gold ETF inflows moderated, indicating a shift towards broader market-linked strategies.
SIP inflows touched a record high of ₹32,087 crore, highlighting sustained strength in retail investor participation.
Hybrid funds witnessed significant outflows of ₹16,538 crore, primarily due to heavy redemptions from arbitrage funds, which weighed on overall category flows.
Debt mutual funds saw a sharp reversal, recording net outflows of ₹2.95 lakh crore, largely due to year-end factors such as advance tax payments, GST obligations, and institutional treasury adjustments.
Overall, the March 2026 flow pattern indicates that while equity and SIP inflows remained strong, seasonal debt outflows and market correction impacted overall industry assets, reflecting a mix of long-term investor confidence and short-term liquidity-driven movements.
For more details, read our March 2026 Mutual Fund Flow Report.