Mutual Fund Industry Hits New Milestone with 23% YoY Growth in FY25

India’s mutual fund industry reached an unprecedented milestone in FY25, with assets under management (AUM) surging 23% year-on-year to a record ₹65.74 lakh crore (US$ 769.70 billion). This robust growth was underpinned by strong net inflows and substantial mark-to-market (MTM) gains, buoyed by upbeat performance in both equity and debt markets, according to the Association of Mutual Funds in India (AMFI).

Equity markets contributed significantly to the asset expansion, with the Nifty 50 TRI and Sensex TRI delivering healthy returns of 6% and 5.9%, respectively. Meanwhile, favourable movements in bond yields supported MTM gains in debt funds, further boosting the industry’s asset base.

A notable ₹8.15 lakh crore (US$ 95.42 billion) in net inflows during the fiscal year also played a pivotal role in driving the growth in AUM. Investor participation reached new highs, with the number of folios climbing to 234.5 million and the investor base expanding to approximately 5.67 crore individuals.

Equity Funds Lead the Charge

Equity-oriented schemes saw record-breaking net inflows of ₹4.17 lakh crore (US$ 48.82 billion)—more than double the previous year’s tally. This, combined with market-driven valuation gains, lifted the AUM of equity mutual funds by 25.4% to ₹29.45 lakh crore (US$ 344.81 billion) by March 2025.

The surge in equity inflows was also fuelled by a flurry of new fund offerings (NFOs). A total of 70 equity NFOs were launched in FY25, collectively mobilising ₹85,244 crore (US$ 9.98 billion), compared to 58 NFOs in FY24 that raised ₹39,297 crore (US$ 4.60 billion).

Investor engagement in equity schemes continued to strengthen, with folios in this segment growing 33.4% year-on-year to 16.38 crore—comprising 70% of the total folios.

SIP Popularity Soars

Systematic Investment Plans (SIPs) gained remarkable traction among retail investors. Contributions through SIPs rose by 45.24% to ₹2.89 lakh crore (US$ 33.84 billion), resulting in a 24.6% increase in SIP-linked AUM to ₹13.35 lakh crore. SIPs now account for 20.31% of the industry’s total AUM, highlighting their growing role in long-term wealth creation.

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Debt Funds Rebound Strongly

Debt mutual funds, which faced net outflows in FY24, bounced back with net inflows of ₹1.38 lakh crore (US$ 16.16 billion) in FY25. The segment’s AUM grew by 20.5%, reaching ₹15.21 lakh crore (US$ 178.08 billion) as of March 2025, up from ₹12.62 lakh crore (US$ 147.76 billion) a year earlier.

Women Investors on the Rise

The mutual fund industry also saw a positive shift in investor demographics. As of March 2025, there were 5.34 crore unique investors, with women accounting for 26% or 1.38 crore of the total, up from 24.2% the previous year. This increase reflects rising financial awareness and participation among women, driven by improved literacy levels and growing female representation in the workforce.

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