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Mumbai — India’s mutual fund industry continues its phenomenal ascent, growing by a staggering 22% year-on-year. According to the latest annual data released by AMFI (Association of Mutual Funds in India), the Assets Under Management (AUM) of the Indian mutual fund industry increased from ₹58.96 lakh crore in FY24 to ₹72.14 lakh crore in FY25, showcasing strong investor confidence, robust economic fundamentals, and consistent equity market performance.
Among the biggest contributors to this surge were industry giants ICICI Prudential Mutual Fund, HDFC Mutual Fund, and SBI Mutual Fund, which registered the highest growth in AUM during the financial year.
The Industry’s Expanding Footprint
The mutual fund landscape in India has undergone a transformative shift in the last decade. From being considered a niche investment product primarily used by high-net-worth individuals (HNIs), mutual funds have become a mainstream financial vehicle embraced by millions of retail investors. The surge in AUM over the last year signals growing investor participation, greater financial awareness, and deeper penetration into Tier-II and Tier-III cities.
Leaders of the Pack: Who Gained the Most?
1. ICICI Prudential Mutual Fund:
ICICI Prudential MF witnessed strong inflows across both equity and hybrid schemes. The fund house strategically positioned itself with a diverse product mix, capitalizing on thematic and flexicap categories. According to insiders, SIP inflows alone grew by over 25%, contributing significantly to its rising AUM.
2. HDFC Mutual Fund:
HDFC MF reported impressive gains in both passive and actively managed funds. Their continued focus on launching ETFs and index funds to attract new-gen investors paid off, while legacy funds maintained stable long-term performance. The fund house also benefited from a surge in retail and corporate investments.
3. SBI Mutual Fund:
As India’s largest public sector mutual fund, SBI MF continued to ride on its trusted brand reputation and expansive reach through banking channels. The AUM growth was driven by robust participation in its balanced advantage and large-cap funds, as well as strong demand from rural and semi-urban investors.
What’s Fueling the Growth?
Several macroeconomic and behavioral factors contributed to this robust growth in the mutual fund sector:
1. Market Performance and Bullish Sentiment
The Indian equity markets delivered impressive returns during FY25, with benchmark indices like the Nifty 50 and Sensex touching all-time highs. This buoyant market outlook drove fresh inflows into equity mutual funds.
2. Systematic Investment Plans (SIPs)
SIP inflows continued to break records, crossing ₹22,000 crore per month by March 2025. With over 7.5 crore active SIP accounts, investors are increasingly adopting disciplined investing habits, particularly among millennials and salaried individuals.
3. Digital Onboarding and Distribution
The digital transformation of the mutual fund industry—through UPI-based transactions, eKYC, and AI-driven investment advisory—helped drive investor acquisition. Fintech apps and robo-advisory platforms have made investing more accessible than ever before.
4. Regulatory Push and Financial Literacy
SEBI’s investor education initiatives and tighter regulatory oversight helped boost trust in mutual funds. Campaigns like “Mutual Funds Sahi Hai” played a pivotal role in attracting first-time investors, especially in Tier-II and Tier-III locations.
5. Economic Fundamentals
India’s economy remains a bright spot globally. With GDP projected to grow by over 6% in FY26, mutual funds continue to be viewed as the go-to avenue for capitalizing on long-term economic growth.
Rise of Passive Investing
While actively managed funds still dominate the AUM charts, passive investing has emerged as a strong contender. Low-cost index funds, ETFs, and target maturity funds saw significant inflows, especially from young investors and corporate treasuries looking for cost-efficient diversification.
Many fund houses, including HDFC and ICICI Pru, have launched new passive products, including sector-specific ETFs and international index funds, aligning with global investing trends.
Retail vs. Institutional Trends
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Retail investors accounted for nearly 60% of net inflows during the year, indicating deepening retail participation.
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Institutional investors such as corporates, pension funds, and insurance companies maintained their share in liquid and debt-oriented funds, although some volatility in interest rates prompted a shift toward short-duration and dynamic bond funds.
Future Outlook: Industry to Cross ₹130 Lakh Crore by FY30
Given the current growth trajectory, several industry experts and fund managers project that the mutual fund AUM will more than double to ₹130 lakh crore by FY2030. A continued rise in disposable income, financial literacy, and favorable regulatory support are expected to be the pillars of this growth.
The growth is not just a number—it reflects the changing mindset of Indian savers, from fixed deposits and gold to equities and professionally managed funds.
📌 Key Numbers at a Glance:
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MF AUM FY24: ₹58.96 lakh crore
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MF AUM FY25: ₹72.14 lakh crore
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Annual Growth: 22%
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SIP Inflows (Monthly Average): ₹22,000+ crore
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Top Gainers: ICICI Pru MF, HDFC MF, SBI MF
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Projected AUM by FY30: ₹130+ lakh crore
#MutualFundsIndia #AUMGrowth #ICICIPru #HDFCMF #SBIMF #InvestmentTrends #SIPIndia #RetailInvestors #DigitalFinance #ETFs #PassiveInvesting #FinancialInclusion #IndiaGrowthStory #WealthCreation #FintechIndia #MutualFundsSahiHai
