SBI, ICICI Prudential and HDFC Mutual Funds Lead the Mutual Fund Industry in Debt Assets

As of June 2025, SBI Mutual Fund, ICICI Prudential Mutual Fund and HDFC Mutual Fund have emerged as the largest fund houses in terms of debt assets in India, dominating the mutual fund landscape, as per Cafemutual report. With a combined debt AUM of over ₹8 lakh crore, these institutions contribute massively to the total ₹21.39 lakh crore debt AUM of the industry.

Top Mutual Funds by Debt AUM: SBI, ICICI Prudential and HDFC Dominate

SBI Mutual Fund leads the chart with ₹2,81,283 crore in debt assets, followed closely by ICICI Prudential Mutual Fund at ₹2,70,340 crore and HDFC Mutual Fund at ₹2,57,878 crore. These three collectively manage over 37% of the total industry’s debt assets. Aditya Birla Sun Life Mutual Fund and Kotak Mutual Fund round out the top 5 with ₹2,16,723 crore and ₹1,82,995 crore, respectively.

Debt Composition in Overall AUM and Key Ratios

Debt assets make up about 29% of the mutual fund industry’s total AUM of ₹74.78 lakh crore. Some players like Bandhan Mutual Fund and Zerodha Mutual Fund have more than 50% of their portfolios focused on debt, with Zerodha Mutual Fund showing 73.86% allocation to debt instruments.

Read More: Equity Mutual Fund Inflows Surge 81.04% in July 2025; NFOs Garner ₹30,416 Crore: AMFI Data!

Breakdown: Pure, Passive and Hybrid Debt AUM Trends

Pure debt funds form nearly 90% of total debt AUM. ICICI Prudential Mutual Fund leads this subcategory with ₹2,53,119 crore, followed by HDFC Mutual Fund’s ₹2,49,167 crore and SBI Mutual Fund’s ₹2,44,589 crore. Meanwhile, Edelweiss Mutual Fund dominates the passive debt space with ₹68,407 crore, largely through Bharat Bond ETFs.

Hybrid Debt Fund Highlights

Only ₹42,600 crore of the industry’s AUM is in debt hybrids. SBI Mutual Fund leads with ₹18,630 crore, while UTI Mutual Fund and HDFC Mutual Fund have ₹6,298 crore and ₹3,560 crore, respectively. Quant Mutual Fund and Kotak Mutual Fund also feature prominently in this space.

Conclusion

SBI Mutual Fund, ICICI Prudential Mutual Fund and HDFC Mutual Fund remain the driving forces in India’s mutual fund debt market. Whether in actively managed, passive or hybrid debt funds, their dominance highlights growing investor interest in fixed income amidst evolving market dynamics.

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