Smallcap Funds attracted highest AUM in September at Rs 9039 crore: Franklin Templeton India MF
* 5 lakh investors added in September 2026, total investor count rose to 6.33 crore
* SIP Flows atan all-time high level of Rs 32,490 crore in September 2026, doubled in less than 3 years
Franklin Templeton India Mutual Fund has released a press note on the development in the Indian mutual funds industry in the month of September. As per the press note, smallcap funds attracted the highest AUM in September ’26 at Rs 9039 crore. Most equity categories witnessed positive net sales in September 2026, Flexi Cap funds topped net sales over last 12 months in equity funds category, in the hybrid funds category - Multi Asset Allocation Funds led with the highest net sales over the last 12 months.
Smallcap Funds in focus
Smallcap Funds were in focus in September, as it attracted the highest AUM in September ’26 at Rs 9039 crore, the category witnessed inflows worth Rs 67,765 crores second only after Flexicap funds.
Flexi Cap Funds category toppednet sales over the last 12 months. Most equity categories witnessed positive net sales in September 2026. In the hybrid funds category, Multi Asset Allocation Fund saw
Multi Asset Allocation Funds Top Net Sales Over Last 12 Months as well as for the month of September at Rs 67,203 crores ad Rs 3667 crores respectively.
5 lakh investors added in September 2026
The Indian MF industry added 5 lakh investors in the month of September 2026. The total investor count rose to 6.33 crore in September 2026. 69 lakh new investors have been added in last 12 months vs 79 lakh in the same period last year.
SIP flow continues
The SIP Flows stood at an all-time high of Rs. 32,490 crores in September 2026, it has doubled in less than 3 years. Monthly SIP flows (up 11% YoY) rose to all-time high of Rs 32,490 crore in Sep’26 vs Rs 29,361 crore in Sep’25. SIP accounts rose to 10.89 crore in Sep’26, up 11.9% YoY. The average SIP size fell down at Rs 2984 p.m. vs Rs 3018 p.m. last year.
Aggregate SIP Flows Continue to Rise Despite Volatile Returns
The aggregate SIP Flows continue to rise despite volatile returns. Aggregate SIP flows have grown ~ 7x at 26% CAGR between FY17 and FY26. The aggregate SIPs have grown from Rs 43,921 crore in FY17 to Rs 3.49 lakh crore in FY26. New SIP registrations in September 2026 stood at 63.26 Lakhs. SIPdiscontinuations as % of registered SIPs down to 79% in September 2026.
B30 vs T30 cities
The AUM growth from B30 cities has outpaced T30 AUM Growth. The share of B30 AUM in industry AUM increased from 16% in December 2020 to 19% in September 2026.
Top 10 States - Contribution to AAUM
Maharashtra continues to be the state accounting for the largest percentage of MF AUMs. New Delhi at 24% and Telangana at 13.11% have seen the highest AAUM growth over the year.
Individual Investors’ AUM growth
Individual investors AUM grew ~8x in 10 Years vs ~6x AUM Growth of the Industry. 5 Years CAGR for Individual Investors stood at 22% p.a vs Industry AUM at 18% p.a over 5 years. Whereas 10 Years CAGR of Individual Investors stood at 22% p.a vs Industry AUM at 18% p.a over 10 Years.
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