Flexi Cap Fund: Preferred Investment Segment
Abakkus Mutual Fund: Equity Mutual Funds Average AUM Surges 17% in FY26
Vaibhav Chugh, CEO, Abakkus Mutual Fund
FinTech BizNews Service
Mumbai, April 16, 2026: Equity-oriented mutual funds witnessed a robust 17.38% year-on-year growth in average net assets under management (AAUM) in March 2026, underscoring sustained investor confidence and a clear shift in allocation preferences. This is according to an analysis by Abakkus Mutual Fund based on AMFI data. The total average net AUM of equity-oriented schemes rose to Rs33.54 lakh crore in March 2026, up from Rs28.57 lakh crore in March 2025, reflecting continued retail participation and resilience in equity markets despite intermittent volatility.
Flexi Cap Funds Take the Lead
Flexi Cap Funds emerged as the largest and fastest-growing category within equity-oriented schemes, with average net AUM rising sharply to ~₹5.28 lakh crore in March 2026, compared to ₹4.22 lakh crore a year back, registering a 25.10% year-on-year growth.
The category now commands a 15.75% share of total equity AAUM, up from 14.77% a year ago, making it the single largest contributor to the equity mutual fund universe.
This strong expansion highlights a clear investor preference for dynamic equity allocation strategy which offers fund managers the flexibility to navigate across market capitalizations, sectors and styles in an evolving macro-economic environment.
Snapshot of Equity Oriented Mutual Fund Schemes in March 2026
|
Scheme Category |
Avg Net AUM Mar26 (₹ Cr) |
Share Mar26 (%) |
Avg Net AUM Mar 25 (₹ Cr) |
Share Mar 25 (%) |
Y-o-Y Growth (%) |
|
Flexi Cap Fund |
5,28,059.76 |
15.75% |
4,22,113.98 |
14.78% |
25.10% |
|
Sectoral/Thematic Funds |
5,00,854.01 |
14.93% |
4,43,499.84 |
15.52% |
12.93% |
|
Mid Cap Fund |
4,37,782.59 |
13.05% |
3,56,671.84 |
12.49% |
22.74% |
|
Large Cap Fund |
3,87,415.68 |
11.55% |
3,48,889.45 |
12.21% |
11.04% |
|
Small Cap Fund |
3,47,116.55 |
10.35% |
2,88,473.49 |
10.10% |
20.33% |
|
Large & Mid Cap Fund |
3,14,204.09 |
9.37% |
2,54,637.15 |
8.91% |
23.39% |
|
ELSS |
2,29,714.69 |
6.85% |
2,25,225.53 |
7.89% |
1.99% |
|
Multi Cap Fund |
2,10,283.52 |
6.27% |
1,69,398.90 |
5.93% |
24.14% |
|
Value Fund /Contra Fund |
2,03,829.55 |
6.08% |
1,78,490.57 |
6.25% |
14.20% |
|
Focused Fund |
1,63,751.30 |
4.88% |
1,39,975.78 |
4.90% |
16.99% |
|
Dividend Yield Fund |
30,604.35 |
0.91% |
29,703.90 |
1.04% |
3.03% |
|
Total Equity AUM |
33,53,616.10 |
100% |
28,57,080.44 |
100% |
17.38% |
Source: AMFI and Abakkus Internal Research
Broad-Based Growth Across Categories
Beyond Flexi Cap Fund, the equity mutual fund landscape witnessed broad-based growth across most categories, with Mid Cap Funds, Sectoral/Thematic Funds, and Large Cap Funds continuing to hold significant shares in overall AAUM.
- Sectoral/Thematic Funds remained among the largest categories with an average net AUM of ~₹5.01 lakh crore, though their share moderated slightly to 14.93% from 15.52% in March25, indicating some cooling in concentrated thematic allocations.
- Mid Cap Funds saw their average net AUM rise to ~₹4.38 lakh crore, reflecting a strong 22.74% growth, with their share increasing to 13.05%, reinforcing continued investor appetite for high-growth opportunities.
- Large Cap Funds, while still sizable at ₹3.87 lakh crore, saw their relative share decline to 11.55% from 12.21%, pointing to a gradual shift away from traditional defensive allocations.
- Small Cap Funds also recorded healthy growth, with average net AUM reaching ₹3.47 lakh crore, up 20.33% year-on-year, and accounting for 10.35% of total equity AUM.
- Large & Mid Cap Funds grew to ₹3.14 lakh crore, registering a 23.39% increase, maintaining a steady presence with a 9.37% share.
Selective Moderation in Traditional and Niche Categories
Some categories witnessed relatively slower growth or declining share, reflecting evolving investor priorities:
- ELSS (Equity Linked Savings Scheme ) saw marginal growth of 1.99%, with average net AUM at ~₹2.30 lakh crore, and their share declining to 6.85%.
- Value/Contra Funds stood at ₹2.04 lakh crore, growing 14.20%, with a stable share of 6.08%, indicating consistent but measured investor interest.
- Multi Cap Funds recorded an average net AUM of ₹2.10 lakh crore, up 24.14%, taking their contribution to overall net AAUM of equity schemes to 6.27%, slightly higher than the last year, suggest investors preference for the mandated allocation structures.
- Focused Funds reached ~₹1.64 lakh crore, growing 16.99%, with a 4.88% share, reflecting selective investor participation.
- Dividend Yield Funds remained the smallest category with an average net AUM of ₹30,604 crore, contributing less than 1% (0.91%) to total equity AAUM.
Commenting on the trends, Vaibhav Chugh, CEO, Abakkus Mutual Fund, said, “The steady expansion in equity AAUM reflects the growing maturity of Indian investors, who are increasingly adopting a long-term investment approach despite market volatility. A key highlight in March 2026 has been the strong and sustained growth of Flexi Cap Funds, which continue to attract flows given their ability to dynamically allocate across market capitalizations and across sectors. These Funds offer agility, which is much needed in today’s dynamic market conditions, a flexibility has resonated well with investors navigating today’s evolving macro environment.
At the same time, sustained flows into Mid and Small Cap funds indicate a strong appetite for alpha generation opportunities, In contrast, the relative modest growth in Large Cap Funds and ELSS categories highlights clear shift in investor priorities towards more flexible, performance oriented – investment strategies.”
The March 26 data points to a broader structural transition in investor preferences, moving away from traditional, large-cap oriented investment approaches towards more dynamic and growth-oriented categories such as Flexi Cap Funds, Mid Cap Funds, and selective sectoral & thematic exposures. This evolution highlights increasing investor sophistication, deeper participation in equity markets, and a growing comfort with portfolio diversification and short-term volatility in pursuit of long-term wealth creation .