The Indian mutual fund industry has scaled a historic high, with assets under management (AUM) crossing ₹70 trillion in March 2025 — marking a 22.25% year-on-year (YoY) growth, according to a report by ICRA Analytics. This robust expansion underscores rising retail participation and growing investor confidence, despite global uncertainties.
Equity, Hybrid, and Passive Funds Lead the Surge
Open-ended “other schemes” — which include index funds, ETFs, and FoFs investing overseas — posted the highest YoY growth at 23.80% in April 2025, followed by equity mutual funds (23.57%) and hybrid schemes (20.74%), as per data from the Association of Mutual Funds in India (AMFI).
Within the passive investment segment:
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Gold ETFs witnessed an explosive 87.33% YoY growth, reaching ₹61,422 crore.
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Index funds recorded a 31% YoY growth, taking the total AUM to ₹2,92,206 crore.
Sectoral and Debt Schemes Also Shine
In the equity category:
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Sectoral/thematic funds saw the highest AUM growth at 49.94%, followed by
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Multi-cap funds, which grew 35.79% YoY.
In the debt segment:
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Long duration funds surged by 58.14% YoY.
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Money market and ultra-short duration funds grew by 44.79% and 32.78% respectively.
Retail Participation on the Rise
The total number of mutual fund folios rose by 30.21% YoY as of April 2025. This growth was primarily led by:
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A 45.94% increase in folios for “other schemes”,
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A 31.39% rise in equity scheme folios.
However, debt scheme folios declined by 1.15%, suggesting a shift in investor preference toward equities and passive products.
Equity Inflows Continue Amid Global Tensions
Despite headwinds from geopolitical tensions and reciprocal tariffs imposed by the U.S., investor confidence remained resilient:
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Equity mutual funds recorded net inflows of ₹24,269.26 crore in April 2025.
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This marked the 50th consecutive month of positive inflows in the equity segment since March 2021.
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Although inflows dipped 3.24% month-on-month (MoM), they rose 28.29% YoY, reflecting long-term investor discipline.
ETFs and SIPs See Steady Growth
Domestic ETFs (excluding Gold ETFs) attracted record net inflows of ₹19,057 crore, reflecting a shift toward low-cost passive investing.
SIP (Systematic Investment Plan) metrics also showed strong growth:
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Total SIP accounts rose 5% YoY to 914.41 lakh.
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SIP contributions grew 31% YoY to ₹26,632 crore in April 2025.
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SIP AUM rose 23% YoY, and now comprises 19.85% of total mutual fund AUM.