India's mutual fund industry has reported a remarkable growth in assets under management (AUM), which reached ₹73.73 lakh crore in FY26, marking a 12.2% increase from the previous year. This growth has been fueled by record contributions to Systematic Investment Plans (SIPs), which totaled ₹32,087 crore in March, up from ₹29,845 crore in February. The surge in SIPs reflects strong retail investor engagement, even amidst ongoing geopolitical uncertainties. Notably, equity mutual funds attracted inflows of ₹40,450.26 crore in March, indicating a rebound in investor confidence. However, the overall mutual fund sector faced net outflows of ₹2.39 lakh crore, primarily driven by shifts in investor preferences towards debt funds, which saw a decline of ₹2.94 lakh crore. Despite this, analysts expect that strong SIP inflows and sustained retail participation will help stabilize the mutual fund industry in the face of ongoing market volatility.