AUM Per Folio of Retail and HNI Investors Declines Up to 10% Over the Last 1 Year

In the mutual fund space, the past year has witnessed a decline in average assets under management (AUM) per folio, especially for retail and high-net-worth individuals (HNIs).  

Average AUM Per Folio Sees 9% to 13% Drop 

As per Cafemutual, as of September 2025, the average AUM per folio for retail investors dropped by 9% from ₹92,000 to ₹83,550. HNI investors experienced a sharper 13% fall, with their average AUM reducing from ₹10.73 lakh to ₹9.38 lakh. For equity-oriented schemes, the average AUM per folio declined 9%, moving from ₹2.11 lakh to ₹1.93 lakh. 

This decline is attributed to smaller SIP contributions and market volatility. Despite a fall in portfolio size, the total number of mutual fund folios grew substantially. 

Strong Growth in Total Folios Despite AUM Decline 

By September 2025, total mutual fund folios increased by 20% to 25.19 crore, up from 21.05 crore a year earlier. Retail investors contributed 91% of total folios while HNI and institutional segments also showed growth — HNI folios rose 24% and institutional folios 16% over the year. 

Read More: Mutual Fund AUM Reaches One-Third of Total Bank Deposits! 

Equity Domination Slips, Debt Allocation Grows 

Equity schemes, although still leading, saw a dip in average folio size and marginal fall in folio share to 69.4%. Meanwhile, debt-oriented schemes witnessed a 16% rise in average AUM per folio, increasing from ₹16.52 lakh to ₹19.15 lakh, as investors shifted capital to lower-risk assets. 

Institutional investors dominate in liquid and debt schemes, while individual participation remains high in equities, with 87% of individual holdings in equity mutual funds. 

Increasing Adoption of Direct Investment Mode 

Retail and HNI investors are increasingly using direct investment platforms. The share of retail direct routes rose from 24% to 27%, and for HNIs from 27% to 29%. Direct mode investments in debt schemes stood at 68%, while 30% of equity scheme investments were made via direct channels. 

Conclusion 

While the average AUM per folio has declined, the overall mutual fund industry continues to expand in folio count and investor base. The trend indicates growing retail participation with smaller investment sizes and a cautious shift toward debt-oriented instruments. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.