India's mutual fund industry just beat FIIs in a historic first. Here's what changed

Indian mutual funds have overtaken FIIs in total assets under custody for the first time, with MF AUC at Rs 76.41 lakh crore versus FII assets of Rs 76.22 lakh crore as of June 2026. MF equity assets surged 23.3% over two years to Rs 54.50 lakh crore, while FII equity assets declined about 12% from their September 2024 peak to Rs 68.65 lakh crore. Domestic MF ownership share in the market hit an all-time high of 11.46% in FY26, while FII share fell to a 14-year low of 16.13%, narrowing the gap to 4.67 percentage points from 17.14 points in March 2015. The industry is targeting Rs 150 lakh crore AUM and 10 crore investors by 2030, against the current base of about 6.2-6.3 crore investors.