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198 mutual fund schemes generated over 10% returns in FY26; 731 ended in the red: SEBI report
4 min read | Updated on August 07, 2026, 13:05 IST
SUMMARY
SEBI's Annual Report 2025-26 indicates that a large number of equity mutual fund investors used the low-return period to accumulate more units, as reflected in higher net inflows and assets under management (AUM) in the equity category.
The number of domestic FoFs surged from just 14 in FY 2024-25 to 49 in FY26.
Most mutual fund schemes delivered subdued returns in FY 2025-26 compared with FY 2024-25. According to SEBI's Annual Report FY 2025-26, the number of direct plans of mutual fund schemes generating over 10% returns declined from 304 in FY 2024-25 to 198 in FY 2025-26. The number of schemes posting negative returns also surged from 243 in FY 2024-25 to 731 in FY 2025-26, while the count of schemes yielding above 5% returns dropped from 1,156 to 737.
However, the lower returns did not dampen the industry's overall growth. Data from the report indicate that a large number of equity mutual fund investors used the low-return period to accumulate more units, as reflected in higher net inflows and assets under management (AUM) in the equity category.
According to the report, FY 2025-26 witnessed redemptions worth ₹4.3 lakh crore from growth/equity-oriented schemes. However, these schemes mobilised more than ₹7.8 lakh crore during the period, resulting in net inflows of over ₹3.46 lakh crore. The net AUM of equity schemes in FY 2025-26 rose to approximately ₹32 lakh crore.
The number of mutual fund asset management companies (AMCs) increased from 46 in FY 2024-25 to 54 in FY 2025-26. Similarly, the number of open-ended schemes launched in FY 2025-26 stood at 246, almost unchanged from 247 in FY 2024-25. The number of domestic fund-of-funds schemes surged from just 14 in FY 2024-25 to 49 in FY 2025-26.
By the end of FY 2025-26, total AUM of mutual funds grew by 12.2 per cent to ₹73.7 lakh crore. Open-ended schemes accounted for 99.7 per cent of total net AUM. Within this category, growth/ equity-oriented schemes led with a net inflow of ₹3.5 lakh crore, primarily driven by flexi-cap funds (₹89,213 crore), small-cap funds (₹51,872 crore), mid-cap funds (₹51,197 crore), and large & mid-cap funds (₹44,306 crore)," SEBI said.
Mutual fund returns: FY25 vs FY26
| Annual return range (%) | No. of schemes (2024-25) | No. of schemes (2025-26) |
|---|---|---|
| <= -10 | 30 | 93 |
| > -10 to <= -5 | 41 | 146 |
| > -5 to <= 0 | 172 | 492 |
| > 0 to <= 5 | 218 | 373 |
| > 5 to <= 10 | 852 | 539 |
| > 10 | 304 | 198 |
Passive investing grows
The passive investing also continued to grow in terms of both product offerings and capital inflows. The number of registered index funds increased to 360 from 309 in the previous year. Gold and other ETFs increased to 328 from 252.
"Overall net inflows into passive schemes (including index funds, ETFs, and overseas fund of funds) climbed to ₹2.1 lakh crore, from ₹1.4 lakh crore in 2024-25. Notably, net inflows into gold ETFs surged 4.6 times to ₹68,868 crore, driven by rising gold prices, inflation concerns, and heightened geopolitical risks," the report said.
Among hybrid schemes, almost all sub-categories reported positive inflows except for conservative hybrid funds, which witnessed a marginal outflow of ₹278 crore. Multi-asset allocation funds attracted the highest inflow at ₹65,209 crore, followed by arbitrage funds at ₹50,060 crore.
Other notable gainers in the hybrid category were dynamic asset allocation/ balanced advantage funds (₹16,644 crore), balanced/aggressive hybrid funds (₹15,899 crore), and equity savings funds (₹7,282 crore).
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