The mutual fund industry’s total assets under management (AUM) rose 11.1% month-on-month to Rs 81.9 trillion in April 2026, while equity mutual fund AUM surged 11.4% month-on-month to an all-time high of Rs 39.1 trillion, according to Motilal Oswal Financial Services’ latest Fund Folio – Indian Mutual Fund Tracker report.
MOFSL is a financial services company. Its offerings include Wealth Management, Capital Markets (Institutional broking & Investment banking), Asset & Wealth Management (Asset Management, Private Equity & Wealth Management), Housing Finance & Equity based treasury investments. MOFSL employs 13,250+ employees serving to 13.6 mn+ clients via distribution reach in 550+ cities. MOFSL has Assets Under Advice (AUA) of Rs 6.5 Lakh Crs.
Key Highlights
- Equity mutual fund AUM surged to record Rs 39.1 trillion as April market recovery boosted valuations.
- Capital Goods and Utilities saw higher allocations, while Technology and Private Banks witnessed reduced exposure.
Equity Mutual Fund AUM Hits Record High
The MOFSL report noted that net equity inflows moderated to Rs 431 billion in April 2026, compared with Rs 485 billion in March 2026. Sales of equity schemes declined 14.3% month-on-month to Rs 878 billion, while redemptions fell 16.9% month-on-month to Rs 447 billion.
Systematic Investment Plan (SIP) contributions stood at Rs 311.2 billion in April 2026, down 3% month-on-month, but up 16.8% year-on-year. The report further highlighted that the Nifty gained 7.5% month-on-month in April 2026, marking its strongest monthly gain since January 2024.
Mutual Funds Increase Bets on Capital Goods and Utilities
On the sectoral front, mutual funds increased exposure to Capital Goods, NBFC - Lending, Utilities, Retail, NBFC - Non Lending, Chemicals, Real Estate, Logistics, and EMS during April 2026. In contrast, allocations to Technology, Private Banks, Healthcare, Oil & Gas, Automobiles, Telecom, Insurance, and Cement moderated on a month-on-month basis.
Capital Goods allocation rose to 7.8% in April 2026, its highest level in 17 months, while Utilities allocation increased to 3.9%, a 19-month high. Meanwhile, NBFC - Non Lending allocation climbed to an all-time high of 2%.
On the other hand, Technology allocation declined to 6.7%, an eight-year low, while Private Banks allocation moderated to 17.3%.
The report also stated that sectors where mutual fund ownership versus the BSE-200 was at least 1% lower included Oil & Gas, Consumer, Utilities, Private Banks, and PSU Banks. Meanwhile, sectors where mutual fund ownership was at least 1% higher included NBFC - Non Lending, Healthcare, Consumer Durables, Capital Goods, and Chemicals.
Among individual stocks, the largest month-on-month increase in value was recorded in SBI, Larsen & Toubro, Reliance Industries, Axis Bank, Kotak Mahindra Bank, Bharti Airtel, Bajaj Finance, Eternal, ICICI Bank and HDFC Bank.
The report further observed that mutual funds were net buyers in 64% of Nifty-50 stocks, 57% of Nifty Midcap-100 stocks, and 63% of Nifty Smallcap-100 stocks during April 2026
Recent Report
India’s debt mutual funds staged a sharp recovery in April, attracting Rs 2.47 lakh crore in net inflows, with total category AUM rising to Rs 19.14 lakh crore from Rs 16.52 lakh crore in March, according to AMFI data. The rebound was largely driven by liquid funds (Rs1.65 lakh crore), overnight funds (Rs 31,420 crore), and money market funds (Rs 20,643 crore) as corporate treasury allocations normalized after year-end withdrawals.
Also Read: Debt Mutual Funds See Rs 2.47 Lakh Crore Inflows in April: AMFI
However, longer-duration debt and gilt funds continued to witness outflows, reflecting investor caution around interest rate uncertainty and RBI policy expectations. Industry experts said the trend highlights growing preference for low-risk, short-term debt instruments amid evolving market conditions.
