Contributing SIP accounts rose to 10.45 crore from 10.05 crore
The mutual fund industry continued to grow in assets and investor numbers in FY26, but the number of schemes posting negative annual returns nearly tripled to 731, from 243 a year earlier. Meanwhile, the schemes delivering returns of more than 10 per cent fell to 198 from 304.The shift was broad-based, with the number of schemes with returns between zero and minus 5 per cent jumped to 492 in FY26 from 172 a year earlier. Schemes with returns between minus 5 per cent and minus 10 per cent increased to 146 from 41, while those with returns of minus 10 per cent or worse, rose to 93 from 30.At the other end of the return spectrum, the number of schemes delivering more than 10 per cent returns fell to 198 from 304. Schemes generating more than 5 per cent returns declined to 737 from 1,156, while those delivering between 5 per cent and 10 per cent fell to 539 from 852.Weaker ReturnsThe number of schemes delivering between zero and 5 per cent returns, however, rose to 373 from 218, according to the Securities and Exchange Board of India’s (SEBI) latest annual report.The data shows a shift in the distribution of annual scheme returns, with the largest increase coming in schemes that ended the year with relatively small losses. SEBI said the change is due to a more subdued return environment and market volatility.The weaker return distribution came even as the mutual fund industry expanded in assets and investor participation. Total assets under management rose 12.2 per cent to ₹73.7 lakh crore at the end of March 2026 from ₹65.7 lakh crore a year earlier. Equity-oriented schemes recorded net inflows of ₹3.5 lakh crore during FY26, led by flexi-cap funds at ₹89,213 crore, small-cap funds at ₹51,872 crore and mid-cap funds at ₹51,197 crore.Net InflowsOverall mutual-fund net inflows, however, declined 9.7 per cent to ₹7.4 lakh crore from ₹8.2 lakh crore in FY25, as a 16.5 per cent increase in redemptions offset a 14.9 per cent rise in gross mobilisation to ₹157.5 lakh crore.Eight new mutual fund asset management companies (AMCs) came into the industry during the year. The number of unique mutual-fund investors increased 13.2 per cent to 6.1 crore from 5.4 crore. Tier-II cities recorded a 37.6 per cent increase in investors to 1.4 crore from 1 crore, while Tier-III cities remained the largest investor base at 3.4 crore, up from 3.3 crore.SIP participation also increased, with contributing SIP accounts rising to 10.45 crore from 10.05 crore. Average monthly net SIP contributions rose 25.8 per cent to ₹16,413 crore from ₹13,052 crore.Published on August 9, 2026
