Every 4th Rupee in Mutual Funds Is Retail; HNIs Hold 33%, Average Ticket Size ₹2,966

According to a report by Franklin Templeton India MF, the Indian mutual fund landscape is witnessing a strong shift towards individual investors, with retail and high net-worth individuals (HNIs) now owning a dominant share of assets under management (AUM). New data highlights the rising influence of retail investors and SIP contributions, supported by a strong surge in passive and thematic funds.

Retail and HNI Ownership Surges 

As of June 2025, individual investors account for 61% of the total AUM in India’s mutual fund industry. Out of this, retail investors contribute 27.01% while HNIs own a larger 33.67%. Over a 10-year span, individual investor AUM has grown 8 times, surpassing the overall industry’s 6 times expansion.

Strong Growth Driven by SIPs and Passive Funds

The systematic investment plan (SIP) average ticket size rose to ₹2,966 in June 2025, nearly touching the ₹3,000 mark and exceeding pre-COVID levels. This reflects growing retail investor commitment. Additionally, passive fund folios have surged 17 times in 5 years, with the category now forming 17% of total AUM, up from 10% in 2021.

Read More: Mutual Fund Industry Saw Addition of 4 Lakh New Investors and 30 Lakh Folios in June 2025!

Breakdown of Individual vs Institutional Asset Allocation

Nearly 87% of individual investor assets are placed in equity-oriented schemes, indicating a high appetite for long-term market returns. Debt accounts for 8%, ETFs/FoFs 3% and liquid instruments 2%. In contrast, institutional investors remain diversified with 28% in ETFs/FoFs, 28% in liquid, 25% in debt and only 19% in equities.

Industry-Wide AUM and Inflow Insights

The mutual fund industry grew at a 20% CAGR over 10 years, compared to 23% CAGR in the individual investor segment. Over the past 12 months ending June 2025, domestic institutional investors saw net inflows of ₹6.5 lakh crore, while foreign portfolio investors registered net outflows of ₹3 lakh crore.

Conclusion

The increasing retail and HNI presence across mutual funds signifies a maturing investor base in India. With SIPs crossing ₹2,900 and passive funds expanding rapidly, individual investors are becoming a major force in driving MF AUM growth.

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