ICICI Prudential, SBI, and HDFC Lead India’s Debt Mutual Fund Space as of September 2025

As per Cafemutual, India’s top debt fund players include ICICI Prudential, SBI, and HDFC Mutual Funds, which dominate the mutual fund industry’s debt asset segment. As of September 2025, nearly 29% of total AUM within the Indian mutual fund industry is driven by debt strategies.

Top 3 Fund Houses in Debt Assets as of September 2025

The mutual fund industry's total AUM stood at ₹77,77,783 crore, of which debt-oriented schemes accounted for ₹22,36,123 crore or 28.75%. ICICI Prudential Mutual Fund led with ₹3,29,356 crore in debt AUM, making up 31.9% of its overall assets. SBI Mutual Fund followed with ₹2,80,075 crore in debt AUM, representing 23.25% of its total portfolio. HDFC Mutual Fund came third, holding ₹2,59,563 crore in debt strategies, equalling 29.23% of its AUM.

Breakdown of Debt Fund Categories Across Industry

Debt schemes are diversified into pure debt, passive debt, and hybrid debt formats. Pure debt schemes garnered ₹19,27,010 crore, passive debt stood at ₹1,75,999 crore, while hybrid debt accounted for ₹1,33,114 crore. ICICI Mutual Fund's pure debt share constitutes almost 80% of its total debt AUM, indicating a conservative and stable focus.

Diversified Debt Allocation: Fund House Overview

While ICICI Mutual Fund leads the sector with a broad coverage of all debt types, SBI Mutual Fund remains heavily inclined towards pure debt, alongside modest passive and hybrid exposure. HDFC Mutual Fund contributes ₹2,50,065 crore in pure debt and balances the rest between passive and hybrid offerings, reflecting diversification.

Read More:Top Equity Mutual Funds with Highest 5-Year CAGR for November 2025!

Aditya Birla and Kotak Mutual Fund Complete the Top 5 in Debt AUM

Aditya Birla Sun Life Mutual Fund secured the 4th position with ₹2,23,306 crore in debt AUM (52.26% of its total assets), making it one of the most debt-heavy portfolios. Kotak Mahindra Mutual Fund, with ₹1,89,453 crore in total debt AUM, stands 5th, attributing 34.03% of its portfolio to debt investments.

Emerging Trends Among Debt-Heavy Fund Houses

Fund houses including LIC Mutual Fund (54%), Bandhan Mutual Fund (53.53%), Edelweiss Mutual Fund (51.62%) and Bajaj Finserv Mutual Fund (40.49%) are showing above-industry allocation to debt instruments. Passive debt is gaining popularity, with Edelweiss Mutual Fund holding ₹66,938 crore in this category alone.

Conclusion

ICICI Prudential, SBI, and HDFC Mutual Funds clearly lead the Indian debt mutual fund space with diversified and sizeable portfolios. Their dominance in debt-oriented schemes reflects investor shift towards income stability, amidst evolving economic landscapes.

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.

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