India reports record mutual fund inflows and renewable energy funding gap

India's mutual fund industry reached a record high in July 2026, with total net inflows hitting Rs 85.75 lakh crore. According to a report by GEPL Capital, monthly net inflows grew by approximately 4.30 per cent. Total Assets Under Management (AUM) increased by 13.80 per cent over the previous year. Corporate investors hold the largest share at 37.17 per cent, followed by High Net-Worth Individuals at 33.83 per cent and retail investors at 27 per cent. Within the equity segment, smallcap funds saw the highest monthly traction with inflows of Rs 7,768 crore.

Separately, India faces a significant financing gap in its renewable energy sector. A Knight Frank study indicates that the country requires annual investments of USD 48-54 billion to meet its 500 GW non-fossil fuel capacity target by 2030, compared to current annual investments of USD 13-18 billion. This leaves an annual gap of approximately $35 billion. While non-fossil fuel capacity rose from 59 GW in 2016 to 300 GW by July 2026, the report suggests that Infrastructure Investment Trusts (InvITs) could be a vital tool for capital recycling to bridge this funding deficit.