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 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.

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. Aggregate SIP flows for the 12-month period ended August 2026 grew 17% YoY to Rs 3.7 lakh crore.

SIP contribution to equity assets and flows hits two-year high

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.

SIP flows as a share of gross equity flows also reached a two-year high of 43%, up from 24% in August 2024.

Infographic:

India's SIP engine continues to accelerate

*  SIP AUM: Rs18.62 lakh crore — +23% YoY

*  Monthly SIP gross sales: Rs32,297 crore — +14% YoY

*  SIP accounts: 10.75 crore — +12.1% YoY

*  12-month SIP flows: Rs3.70 lakh crore — +17% YoY

SIP share of equity AUM

• August 2024: 27.4%
• August 2026: 30.7%

SIP share of gross equity flows

• August 2024: 24%
• August 2026: 43%
• Monthly SIP Flows Double in Less Than Three Years
• Rs 19,187 crore → Rs 32,297 crore

The growth leaders

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.

Flexi-cap funds lead equity sales; liquid funds dominate debt

Among equity fund categories, Flexi-cap funds recorded 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.

SIFs emerge as a rapidly growing category

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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