Institutional Money Makes Up 40% of Indian Mutual Fund AUM at ₹33 Lakh Crore

India’s mutual fund industry continues to be driven largely by retail participation, yet institutional investors still hold a substantial share of total assets under management. Latest industry data shows institutional money accounts for close to 40% of overall mutual fund AUM. 

Institutional Share in Industry AUM 

Out of the total mutual fund industry AUM of around ₹82,00,000 crore, institutional investors contribute approximately ₹33,00,000 crore.  

These investors mainly include corporates, banks, and foreign institutional investors. However, dependence on institutional assets varies significantly across asset management companies. 

SBI Mutual Fund Leads in Institutional Assets 

SBI Mutual Fund holds the largest share of institutional assets in the industry, managing about ₹6,54,000 crore from institutions. This represents nearly 52% of its total AUM. SBI Mutual Fund alone accounts for close to 20% of total institutional assets across the mutual fund industry. 

Top AMCs and Institutional Dependence 

ICICI Prudential Mutual Fund and HDFC Mutual Fund are the next major recipients of institutional money, managing ₹4,42,000 crore and ₹2,90,000 crore respectively. 

 Other large fund houses such as UTI Mutual Fund and Aditya Birla Sun Life Mutual Fund also show high institutional dependence, with over 50% of their AUM coming from institutional investors. 

Corporate Treasuries Dominate Flows 

Data indicates that corporate treasuries dominate institutional investments in mutual funds. Of the total institutional AUM of around ₹32,60,000 crore, nearly ₹30,90,000 crore comes from corporates.  

Banks and foreign institutional investors together contribute only about ₹1,78,000 crore, highlighting the role of mutual funds as a cash management avenue for companies. 

Read More: Top 3 Mutual Fund Players in Direct Plans: SBI, ICICI Prudential and Nippon India Lead Direct AUM in 2025! 

Divergence Among New Age AMCs 

Newer fund houses show sharp contrasts in institutional exposure. Jio BlackRock Mutual Fund has more than 76% of its AUM sourced from institutions.  

In contrast, retail focused and digital first AMCs such as Groww Mutual Fund, Zerodha Mutual Fund, and Navi Mutual Fund have significantly lower institutional participation. 

Conclusion 

Institutional investors play a critical role in India’s mutual fund ecosystem, contributing nearly 40% of total AUM. While large and established AMCs rely heavily on institutional money, newer players display diverse asset mix patterns, underlining structural differences in fund house strategies. 

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.