Flexi Cap Funds Lead Equity MF Surge as AUM Jumps 17% to ₹33.54 Lakh Crore

Equity-oriented mutual funds witnessed a strong 17.38% year-on-year rise in average assets under management (AUM), reaching ₹33.54 lakh crore in March 2026, up from ₹28.57 lakh crore a year ago, despite ongoing market volatility. The growth reflects sustained investor confidence and continued inflows into equity markets, with a noticeable shift toward more flexible and growth-oriented investment strategies.

At the forefront of this surge, Flexi Cap Funds emerged as the largest and fastest-growing category, with AUM climbing 25.10% to ₹5.28 lakh crore. Their share of total equity AUM increased to 15.75%, making them the dominant segment in the equity mutual fund space. According to data analysed by Abakkus Mutual Fund based on Association of Mutual Funds in India (AMFI) figures, this rise underscores a growing investor preference for dynamic allocation strategies that allow fund managers to move across market capitalisations and sectors in response to changing economic conditions.

Other categories also recorded healthy expansion, with Mid Cap Funds growing 22.74% to ₹4.38 lakh crore and Small Cap Funds rising 20.33% to ₹3.47 lakh crore, signalling strong appetite for higher-return opportunities. Meanwhile, Sectoral/Thematic Funds remained sizable though their share slightly declined, and Large Cap Funds saw a drop in relative share, indicating a move away from traditional defensive allocations. Slower growth in ELSS and modest gains in Value/Contra Funds further highlight an evolving investment landscape, where investors are increasingly favouring flexible, performance-driven strategies over rigid, tax-saving or conservative approaches.

Pic Courtesy: google/ images are subject to copyright