Mutual Fund AUM Growth Hits 3-Year Low Despite 18% Rise in 2025: AMFI Data

India’s mutual fund industry continued to expand in 2025, recording double-digit growth in assets under management (AUM).  

However, the pace of expansion moderated significantly compared with the exceptional surge seen a year earlier, reflecting weaker market-driven gains and softer equity inflows. 

AUM Expansion Moderates After Strong 2024 

As per AMFI data, the industry’s average AUM during the October–December 2025 quarter rose to about ₹81 trillion, compared with ₹68.6 trillion in the corresponding period of 2024, translating into growth of over 18%.  

This marked a sharp slowdown from 2024, when average AUM had jumped by nearly 40%, largely supported by strong equity market performance. 

Experts attribute the moderation in 2025 primarily to lower mark-to-market gains amid subdued equity markets. Equity scheme inflows also remained comparatively muted through the year, limiting incremental AUM growth. 

Large Fund Houses Drive AUM Gains 

Growth in industry assets remained concentrated among the largest players. Nearly half of the total AUM increase during 2025 was contributed by the top four asset managers. 

The combined quarterly average AUM of SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund and Nippon India Mutual Fund rose by ₹6.1 trillion during the year, out of the industry-wide increase of ₹12.4 trillion. 

In absolute terms, ICICI Prudential and HDFC recorded the highest additions, increasing their average AUM by about ₹2 trillion and ₹1.4 trillion respectively. 

SBI Mutual Fund, the largest fund house with an average AUM of ₹12.5 trillion, added ₹1.3 trillion over the year. Nippon India Mutual Fund also remained among the fastest-growing large players, with its AUM rising by 23%, or roughly ₹1.3 trillion. 

Smaller Players Lead in Percentage Growth 

While large fund houses dominated in absolute additions, several mid-sized and smaller asset managers outperformed on a percentage basis.  

Motilal Oswal Mutual Fund, Parag Parikh Financial Advisory Services and Invesco Mutual Fund recorded the fastest AUM growth rates among the top 20 fund houses in 2025, reflecting continued investor appetite for differentiated investment strategies. 

Read More: NFO Alert: Bank of India Mutual Fund Launches Banking and Financial Services Fund! 

Conclusion 

Although mutual fund AUM growth slowed notably in 2025 compared with the previous year, the industry continued to add substantial assets, led by large fund houses and supported by selective outperformance among smaller players. The trend highlights a more normalised growth phase, with market conditions playing a bigger role than extraordinary valuation gains.

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