As of March 2026, India's equity-oriented mutual funds have seen a 17.38% year-on-year increase in average assets under management (AUM), reaching ₹33.54 lakh crore. Flexi Cap Funds have emerged as a frontrunner, with their AUM climbing 25.10% to ₹5.28 lakh crore, capturing 15.75% of total equity assets. This shift reflects a growing preference among investors for more flexible and dynamic investment strategies, moving away from rigid allocations. Other categories, such as Mid Cap Funds and Small Cap Funds, also reported significant growth, with Mid Cap Funds rising to ₹4.38 lakh crore and Small Cap Funds reaching ₹3.47 lakh crore. In contrast, traditional categories like Large Cap Funds and Equity Linked Savings Schemes (ELSS) experienced slower growth, indicating a changing landscape in investor priorities. Vaibhav Chugh, CEO of Abakkus Mutual Fund, emphasized that the sustained interest in Flexi Cap and mid-cap funds highlights a shift towards long-term wealth creation strategies in India's evolving market conditions.