The mutual fund industry sustained its momentum in May 2026, with Average AUM rising to ₹83.46 lakh crore from ₹81.94 lakh crore in April, even as total net outflows of ₹64,021 crore were recorded during the month, largely driven by heavy debt redemptions.
Equity-oriented inflows fell to a one-year low of ₹22,908 crore in May. Flexi-cap, Small-cap and Mid-cap funds continued to lead, though all three saw meaningful deceleration from April’s elevated levels.
Hybrid inflows halved to ₹10,560 crore, largely on account of a sharp moderation in Arbitrage fund flows.
Passive fund inflows fell sharply in May, with Index Funds and ETFs pulling back significantly from April’s levels. Gold ETFs turned net negative for the first time in 13 months.
Debt mutual funds recorded a net outflow of ₹96,949 crore, sharply reversing April’s all-time high inflow — driven by seasonal advance tax outflows and a tightening in banking system liquidity that pushed short-term rates higher.
SIP contributions remained broadly stable at ₹30,954 crore, easing marginally from April’s ₹31,115 crore, continuing to reflect the resilience of retail investor participation.
Overall, May 2026 reflects a seasonal liquidity-driven correction in debt flows, while equity and SIP momentum — though moderating — remain structurally intact, keeping industry AUM on an upward trajectory.