India’s Mutual Fund AUM Rises by 21%, Passive Funds Drive Growth in 2025

India's mutual fund industry witnessed a 21% increase in assets under management (AUM) during 2025, reaching ₹80.55 lakh crore by November 28, 2025, from ₹66.66 lakh crore at the end of December 2024.  

Passive funds, hybrid schemes, and equity mutual funds largely contributed to this expansion, according to data shared by the Association of Mutual Funds in India (AMFI). 

Passive Funds See Strongest Growth in AUM 

Among the major mutual fund categories, passive funds recorded the most significant rise. The AUM of ETFs and index funds increased by 27% during the year, moving from ₹11.11 lakh crore in December 2024 to ₹14.07 lakh crore by November 2025.  

Within this category, gold ETFs surged 148% to ₹1.10 lakh crore, up from ₹44,595 crore. Fund-of-funds (FoFs) investing overseas and other ETFs registered jumps of 35% and 22% respectively. 

Equity and Hybrid Funds Also Record Inflows 

Equity mutual funds saw their AUM grow 17% to ₹35.65 lakh crore in November 2025, compared to ₹30.57 lakh crore in December 2024. Flexicap funds led the equity sub-categories with a 24% increase, while multicap and large & midcap funds grew by 23% and 22% respectively.  

Hybrid funds witnessed a 24% growth in AUM to ₹10.87 lakh crore, with multi-asset allocation funds rising 52% and arbitrage funds by 40%. 

Read More: Mutual Fund AUM to Surpass ₹150 Lakh Crore by FY30 Backed by Growing Household Savings! 

Debt and Solution-Oriented Funds Show Mixed Results 

The AUM in debt funds rose by 23%, reaching ₹19.35 lakh crore. Money market funds led the gains with a 55% increase. Low and ultra-short duration funds followed with 37% and 36% growth respectively.  

On the downside, long duration and gilt funds saw a 7% decline, and credit risk funds fell by 3%. Solution-oriented funds registered an 11% rise, with children’s funds growing 13% and retirement schemes by 9% over the period. 

Conclusion 

The mutual fund industry's total AUM expansion to ₹80.55 lakh crore in 2025 was supported mainly by passive funds, hybrid assets, and equity mutual funds. The prominence of gold ETFs and multi-asset funds also points to evolving investment patterns among participants. 

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.