Mutual Fund AUM Reaches One-Third of Total Bank Deposits 

India’s mutual fund landscape has witnessed significant expansion over the past decade, with assets growing rapidly across categories, investor segments and geographies.  

According to data shared by Franklin Templeton Mutual Fund, mutual funds are steadily becoming a mainstream investment avenue, supported by rising SIP participation, broader city-level penetration and strong growth in individual holdings. 

Mutual Fund Scale, Sales Trends & Equity Allocation 

As per Franklin Templeton Mutual Fund’s data, mutual fund assets have reached about ₹80 lakh crore, placing them at nearly one-third of bank deposits, which stand around ₹240 lakh crore as of October 2025. A decade earlier, MF assets were only 12.6% of bank deposits, highlighting the sector’s substantial relative growth. 

Flexi-cap funds led net sales in the past 12 months with around ₹72,640 crore, while sectoral/thematic schemes followed roughly ₹58,300 crore. Small-cap and mid-cap categories also saw strong activity at ₹52,900 crore and ₹51,300 crore, respectively.  

Equity’s share in total AUM eased to 59.9%, down from 60.5%, even though the value of equity assets rose from ₹40.7 lakh crore to ₹47.9 lakh crore 

SIP Momentum & Geographic Expansion 

SIP inflows touched around ₹29,529 crore in October 2025, nearly doubling within three years and marking a 17% rise from last year’s level of ₹25,323 crore. The typical SIP amount has increased from ₹2,501 to ₹2,989 over the past 12 months. 

Geographically, B15 cities have strengthened their presence, lifting their share of AUM from 26% in 2020 to 35% in 2025. Meanwhile, Mumbai and Delhi continue to dominate with 40% of total MF assets.  

At the state level, Haryana and Rajasthan posted the highest annual AUM growth at 20.85% and 19.54%, with Telangana at 17.64%. 

Read More: Top 3 Equity ETFs That Have Outperformed Gold and Silver in 5 Years (2020-25)! 

Conclusion  

The mutual fund industry is expanding rapidly, supported by higher retail engagement, increasing SIP momentum, and broader geographic reach. With individual AUM outpacing overall growth and flexi-cap funds leading sales, the sector shows strong long-term potential as a preferred investment avenue for India’s evolving investor base. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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 Funds Investments are subject to market risks, read all the related documents carefully before investing.