The mutual fund (MF) industry experienced a slowdown in new investor additions in 2025, with only 5.8 million new investors joining by November 30. This marks a significant decline from the 10.6 million additions in 2024, attributed to increased equity market volatility.
The equity market correction and heightened volatility have been key factors in the reduced pace of investor additions in 2025. The Mutual Fund industry added 5.8 million new investors this year, a sharp decrease from the record 10.6 million in 2024.
Despite this, the 2025 figure surpasses the 5.3 million added in 2023. However, in percentage terms, the growth rate in 2025 is likely to be the weakest in 5 years, with only an 11% increase in unique investors, compared to 15% in 2023.
The subdued investor sentiment has also affected New Fund Offerings (NFOs), which are crucial for attracting new investors.
The industry raised ₹63,631 crore through 222 NFOs in 2025, significantly lower than the nearly ₹1.2 trillion collected from 239 launches in 2024. This decline reflects the cautious approach of investors amid market uncertainties.
Despite the challenges, systematic investment plans (SIPs) have shown resilience. SIP inflows crossed ₹3 trillion for the first time in a calendar year in 2025, indicating sustained interest from existing investors.
Retail participation has deepened, with total Mutual Fund folios reaching around 256 million, and over 4 million folios added in October 2025 alone. Equity-oriented categories now account for nearly 200 million folios, highlighting the growing role of MFs in household financial planning.
Read More: Mutual Fund Cash Pile Grow by Over ₹14,500 Crore in 2025, Industry Welcomes 5 New AMCs!
The Mutual Fund industry in 2025 has faced challenges due to equity market volatility, resulting in a slowdown in new investor additions. However, the continued growth in SIP inflows and retail participation underscores the enduring appeal of MFs as a key component of financial planning for many households.
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.
Published on: Dec 31, 2025, 11:36 AM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
