The Indian mutual fund (MF) industry recorded its strongest growth yet in financial year 2024-25, with assets under management (AUM) surging 23.11 per cent to an all-time high of Rs 65.74 lakh crore as of March 2025, according to the Association of Mutual Funds in India (AMFI)’s annual report.
This sharp increase from Rs 53.40 lakh crore in March 2024 was fuelled by robust net inflows of Rs 8.15 lakh crore and mark-to-market gains, supported by buoyant equity and debt markets. The Nifty 50 TRI and Sensex TRI delivered returns of 6.0 per cent and 5.9 per cent, respectively. Debt markets contributed to the expansion, aided by a February 2025 repo rate cut to 6.25 per cent.
“The mutual fund industry has demonstrated remarkable resilience and sustained growth, with investors continuing to view it as a trusted vehicle for long-term wealth creation despite ongoing market volatility and global economic challenges,” said, Venkat N Chalasani Chief Executive, AMFI. As of March 2025, the industry’s AUM reached an all-time high of Rs 65.74 lakh crore, largely driven by record net inflows of Rs 8.15 lakh crore during the fiscal year—reflecting strong investor confidence and robust market participation.
Equity, Debt And Hybrid Funds See Broad-based Growth
Equity-oriented schemes attracted the highest net inflow at Rs 4.17 lakh crore. The debt segment, which had seen outflows for three consecutive years, rebounded with inflows of Rs 1.38 lakh crore as investors sought relatively safer avenues amid prospects of further rate cuts. Hybrid and passive schemes, including index funds and ETFs, also registered strong inflows, pointing to a growing preference for diversification.
India’s MF AUM-to-GDP ratio climbed to a record 19.9 per cent, though it remains well below that of advanced economies, indicating significant untapped potential.
Retail Participation And SIP Inflows Hit New Highs
Retail investor participation soared in FY25, with the number of mutual fund folios rising 32 per cent year-on-year to 23.45 crore. Equity-oriented folios formed the bulk, growing 33.4 per cent to 16.38 crore and accounting for 70 per cent of the total. Hybrid folios rose 16.1 per cent, while index funds and ETFs registered a 48.3 per cent jump. Debt scheme folios, however, declined 3 per cent to 69.5 lakh.
Systematic investment plans (SIPs) played a central role in driving investor engagement. Annual SIP contributions jumped 45.24 per cent to Rs 2.89 lakh crore, while SIP AUM rose 24.59 per cent to Rs 13.35 lakh crore, comprising over 20 per cent of total AUM. The number of active SIP accounts rose to 8.11 crore in March 2025, up from 6.38 crore a year ago.
“The consistent rise in SIP accounts and a detailed analysis of investment trends indicate a growing preference among investors for disciplined, long-term investing over short-term speculation,” Chalasani noted, highlighting a maturing investor base. “This shift underscores a more mature and patient investor mindset.”
SIPs held for over five years continued to rise, with direct plan SIPs accounting for 21 per cent of total SIP AUM in FY25, up from 12 per cent in FY20. This trend was consistent across both T30 (top 30) and B30 (beyond top 30) cities.
Equity Funds Gain Despite Global Uncertainty
Equity mutual funds registered record inflows of Rs 4.17 lakh crore—more than double the inflows in FY24—despite persistent foreign institutional outflows and global macro uncertainties. The equity AUM rose 25.4 per cent to Rs 29.45 lakh crore, aided by market performance and robust investor interest.
New fund offerings (NFOs) remained strong, with 70 equity NFOs mobilising Rs 85,244 crore, led by Sectoral/Thematic, Flexi Cap and Mid Cap categories. These three segments collectively accounted for 43 per cent of equity AUM. Large Cap funds reversed previous trends with Rs 23,487 crore in inflows, while Large & Mid Cap and Mid Cap funds saw nearly double the previous year’s inflows. Small Cap funds sustained their momentum from FY24.
Debt mutual fund AUM rose 20.5 per cent to Rs 15.21 lakh crore. Improved liquidity, falling bond yields and a favourable interest rate outlook played a key role in reviving investor interest in fixed income products.
Long-term Prospects Remain Positive
The AMFI report highlighted a significant shift toward long-term investment behaviour. The share of SIP assets held for over five years has grown consistently over the past five years. In FY25, direct plan SIPs made up 21 per cent of total SIP AUM, compared to 12 per cent in FY20.
This trend was seen across both T30 (top 30) and B30 (beyond top 30) cities, with long-term SIP asset holdings increasing and short-term holdings declining. Investors appeared less influenced by short-term volatility and more committed to sustained wealth creation.
“Overall, the mutual fund industry’s performance in FY25 underscores its strength and long-term potential,” Chalasani concluded. “The outlook remains optimistic, backed by increasing investor participation and favourable macroeconomic indicators.”
As of March 2025, the industry’s assets under management (AUM) reached an all-time high of Rs 65.74 lakh crore. This milestone was largely driven by record net inflows of Rs 8.15 lakh crore during the fiscal year—reflecting strong investor confidence and robust market participation.