MF industry assets growth flat in March quarter as market turns volatile

Wild swings in equity markets and a sharp decline in key benchmark indices this year have weighed heavily on the mutual fund industry, with most asset management companies reporting only low single-digit growth in the March quarter.

Of the top 20 fund houses, as many as 11 recorded a quarter-on-quarter decline in assets under management (AUM) in March, reflecting the broader market downturn.

For instance, market leader SBI MF’s assets were almost unchanged at ₹12.48 lakh crore while that of HDFC MF was up marginally at ₹9.27 lakh crore (₹9.24 lakh crore).

DP Singh, Deputy Managing Director and Joint CEO, SBI Mutual Funds said the AUM was largely flat due to mark-to-market loss in both active and passive funds during the March quarter.

“Being the market leader in active and passive equity funds the impact was more visible. The benchmark indices have fallen almost 10 per cent during the quarter. Further, the normal year-end redemption phenomenon has also played its role across the industry,” he said.

Among other large fund houses that reported a marginal drop in AUM in the March quarter include Aditya Birla Sun Life MF, UTI MF, Axis MF, Mirae Asset MF, Bandhan MF, Motilal Oswal MF, Franklin Templeton MF, Canara Robeco MF and Quant MF.

The MF industry AUM was flat at Rs 81.53 lakh crore in March quarter against Rs 81 lakh crore in December quarter.

The benchmark Sensex and Nifty has fallen 15 per cent each in the March quarter directly impacting both the active and passively managed schemes as the West Asia war disrupted India’s economic growth.

PPFAS MF registered the highest growth of 4 per cent among top 20 fund houses with assets growth to Rs 1.52 lakh crore in March quarter against Rs 1.45 lakh crore in December quarter, according the Association of Mutual Funds in India data.

It was followed by Nippon MF and ICICI MF with 3 per cent asset growth at Rs 7.24 lakh crore (Rs 7 lakh crore) and Rs 11.03 lakh crore (Rs 10.76 lakh crore).

The drop in AUM would have been much sharper if not for the steady inflows through SIP and equity inflows. Unlike in previous instances, investors have been pumping in more money whenever markets plunged in a bid to average their cost.

The inflows in actively managed equity schemes increased nine per cent in March quarter to Rs 90,457 crore against Rs 82,655 crore in December quarter.

Similarly, inflows in passive funds jumped 44 per cent to Rs 84,602 crore against Rs 58,777 crore in the December quarter.

Akshat Garg, Head - Research & Product at Choice Wealth said despite sharp volatility and correction in equities, the industry saw strong retail participation with positive equity inflows for the 61st consecutive month and SIP contributions hitting a record high almost every month. This indicates that domestic investors are increasingly acting counter-cyclical rather than reacting to short-term market movements, he said.

Though there may be some moderation or volatility in flows depending on market returns, he added the rising SIP penetration and growing investor awareness will support inflows in long-run, he added.

Published on April 26, 2026