#MFIndustry #MFunds3LakhNewInvestors #NewInvestortsMay #SIPMomentum #MFGrowth
Chandigarh: The Indian mutual fund (MF) industry continued its upward climb in May 2025, adding 3.19 lakh new investors and registering over 20 lakh new folios, reinforcing strong retail participation amid market optimism. With this, the total number of unique mutual fund investors has risen from 5.46 crore to 5.49 crore, according to data released by industry sources.
Retail interest remained buoyant across both T30 (top 30 cities) and B30 (beyond top 30 cities) locations, reflecting deepening penetration and rising trust in mutual funds as a long-term investment avenue.
Robust Growth in AUM
The industry’s assets under management (AUM) witnessed solid growth, especially in non-metro (B30) regions.
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T30 AUM increased by around 3% during the month, rising from ₹56.84 lakh crore to ₹58.50 lakh crore.
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Within T30, regular plan AUM saw a 3.5% growth (₹29.67 lakh crore to ₹30.71 lakh crore), while direct plan AUM rose 2% to ₹27.79 lakh crore.
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B30 AUM recorded a higher growth rate of 4%, climbing from ₹13.16 lakh crore to ₹13.70 lakh crore.
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B30 regular plans increased from ₹9.87 lakh crore to ₹10.26 lakh crore, and direct plans from ₹3.29 lakh crore to ₹3.44 lakh crore.
Notably, average AUM per folio also improved:
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T30 rose from ₹2.58 lakh to ₹2.67 lakh.
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B30 improved from ₹1 lakh to ₹1.03 lakh.
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Combined average retail AUM per folio rose over 3% from ₹1.82 lakh to ₹1.88 lakh, signaling improved ticket sizes and investor confidence.
SIPs Continue to Power Retail Flows
Systematic Investment Plans (SIPs) remained a major growth engine in May:
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SIP accounts grew from 8.89 crore to 9.05 crore, adding 16.5 lakh new registrations.
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SIP inflows edged slightly higher to ₹26,688 crore, up from ₹26,632 crore.
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SIP AUM increased more significantly, by over 5%, from ₹13.90 lakh crore to ₹14.61 lakh crore, indicating continued retail faith in disciplined, long-term investing.
NFO Activity Focuses on Passive Funds
May saw 19 new fund offerings (NFOs):
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Passive segment dominated with 14 new funds, including 7 index funds and 7 non-commodity ETFs.
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Equity-oriented funds contributed 3 launches, including 1 multi-cap and 2 sectoral/thematic funds.
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Debt and hybrid categories saw one launch each, indicating moderate diversification across categories.
Distribution Network Expands with New ARNs
Reflecting a growing distribution ecosystem, the month recorded 5,004 new ARN registrations, with:
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Corporate employees: 2,493
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Individuals: 2,292
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Corporate entities: 206 new entrants
Top states contributing to ARN growth included Maharashtra (19.5%), Uttar Pradesh (9.91%), and Gujarat (9.69%). In total, the industry now has 3.03 lakh ARN holders, with a 55:45 split between T30 and B30 regions, respectively.
Additionally, 7,315 ARN renewals were recorded, showing continued engagement from existing distributors.
Outlook: Retail to Remain Core Growth Driver
The steady rise in investors, folios, and SIP flows, particularly from B30 cities, underscores the expanding retail footprint in India’s mutual fund landscape. As digital access improves and financial awareness rises, the mutual fund industry is expected to continue this momentum through FY25.
