Indian Mutual Fund Industry Crosses ₹74 Lakh Crore in AUM

The Indian Mutual Fund (MF) industry has witnessed remarkable growth, with total Assets Under Management (AUM) reaching ₹74.40 lakh crore, marking a more than sevenfold increase over the past decade, as per news reports.

Breakdown of AUM by Fund Type

Equity funds continue to dominate the Indian MF landscape, commanding 59.94% of the total AUM. This is followed by:

• Debt funds: 26.53%
• Hybrid funds: 8.28%
• Other categories: 5.26%

This distribution highlights the enduring appeal of equities, while also indicating a measured appetite for fixed-income and diversified strategies.

Rise of Passive Investing

Passive investing has seen a notable rise, now making up around 17% of total AUM. While active funds still hold the lion’s share, this growing trend reflects investors’ preference for low-cost, transparent, and benchmark-aligned options.

Q1 FY2025: Robust Inflows Driven by Debt Rebound

During Q1FY25, mutual funds recorded net inflows of ₹3.98 lakh crore. This marked a strong recovery, especially in the debt category, which saw ₹2.39 lakh crore in inflows, reversing the outflows seen in the previous quarter. Other key contributors included:

• Equity funds: ₹1.33 lakh crore
• Commodity funds: ₹9,000 crore

Of the total inflows, active strategies attracted ₹3.62 lakh crore, while passive funds added ₹36,000 crore.

Equity Inflows Led by Broad-Based and Passive Strategies

Broad-based equity funds emerged as the top-performing category, drawing ₹86,000 crore in net inflows, accounting for 64% of total equity flows. Within this:

• Active funds contributed: 55%
• Passive funds contributed: 106% (indicating simultaneous reallocation from other categories)

Among active broad-based funds, the leading segments were:

• Flexi Cap: ₹15,800 crore in net inflows
• Small Cap: ₹12,000 crore
• Mid Cap: ₹10,800 crore

Also Read: SIP Calculator: How a ₹33,000 Monthly SIP for 5 Years Can Grow into ₹4.6 Crore by Age 50

Thematic Funds Face Outflows

In contrast to the strong performance of other segments, thematic mutual funds recorded net outflows of ₹2,400 crore, a sharp reversal from ₹8,400 crore in inflows seen in the previous quarter. This suggests a waning investor appetite for niche, sector-specific strategies amid current market conditions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.