Mutual Fund AUM to Surpass ₹150 Lakh Crore by FY30 Backed by Growing Household Savings

The Indian mutual fund industry is on track to record significant growth in the coming years, with its total assets under management (AUM) anticipated to surpass ₹150 lakh crore by FY30. This surge is being largely driven by increasing retail investor participation and a shift in household financial savings toward mutual funds. 

Mutual Fund Industry Growth Supported by Household Savings Trend 

According to ICICI Prudential AMC’s Red Herring Prospectus, the mutual fund industry is expected to register a compound annual growth rate (CAGR) of 16–18% over the next 5 years, taking the total AUM beyond ₹150 lakh crore by FY30.  

Data from RBI and CRISIL Intelligence highlights a notable increase in the share of mutual funds in Indian household savings, which has risen from 8% in FY22 to 12% in FY25. 

During this period, annual household inflows into mutual funds climbed from ₹1.6 lakh crore in FY22 to ₹4.7 lakh crore, translating to a CAGR of 42.6%.  

In contrast, deposits—both bank and non-bank—witnessed a 14.5% CAGR, while flows into provident and pension funds, life insurance, and equities showed growth rates of 12.8%, 3.2%, and 14.8%, respectively. 

Retail Participation and Distribution Dynamics 

Individual investor asset growth has been recorded at a CAGR of 3.8%, slightly behind the institutional investor AUM growth of 5.3%.  

However, retail investor contribution to total mutual fund AUM has significantly increased, moving from 19% in March 2020 to nearly 27% in the first half of FY26. 

Among individual assets, 27.5% now come through direct plans, with the remaining 72.5% channelled via distributors. This indicates a growing comfort with both direct investing and advisor-led investments in mutual funds. 

Read More: Mutual Fund Share in Household Assets Jumps 125% in 10 Years, Rises from 4% in FY15 to 9% in FY25! 

India’s AUM to GDP Ratio Provides Expansion Scope 

Currently, India’s mutual fund AUM accounts for approximately 20% of the nation’s GDP. This figure is considerably lower when compared with the global average of 64%, indicating substantial potential for the mutual fund industry to expand in terms of capital mobilisation and penetration. 

Conclusion 

The mutual fund industry in India has shown consistent growth, fuelled by rising household participation and a growing inclination towards formal investment instruments. With investor education and technology access improving, the AUM figures have continued to build momentum across both institutional and retail segments. 

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.