India’s mutual fund industry extended its strong growth streak in 2025, adding nearly ₹14 trillion to its asset base and taking total assets under management (AUM) to an all-time high of ₹81 trillion by November, driven largely by rising retail participation and record inflows through systematic investment plans (SIPs).
Data from the Association of Mutual Funds in India (AMFI) shows that the industry recorded net inflows of about ₹7 trillion during the year so far, while the investor base expanded sharply by 3.36 crore accounts, reflecting the deepening penetration of mutual funds among households.
Venkat Chalasani, Chief Executive Officer of AMFI, said the outlook for the industry remains constructive, with consistent SIP inflows helping offset intermittent foreign portfolio investor (FPI) outflows and lending stability to domestic markets.
Looking ahead, Chalasani noted that fund flows are likely to be influenced by market valuations and global developments, with investors showing a growing preference for large cap, diversified and hybrid schemes.
The industry’s AUM rose 21% year-on-year, from ₹67 trillion at the end of 2024 to ₹81 trillion by November 2025. While this growth was slower than the 31% expansion in 2024 and 27% growth in 2023, the longer-term trend remains robust. Over the past five years, the industry has added nearly ₹50 trillion to its asset base, underscoring a structural shift toward long-term investing.
Himanshu Srivastava, Principal Manager Research at Morningstar Investment Research India, attributed the sharp rise in AUM to a combination of steady equity market performance and sustained retail participation through SIPs.
He added that the ongoing financialisation of household savings, rising participation from first-time investors and the growing preference for mutual funds as a transparent and well regulated investment vehicle have played a key role in driving growth.
The industry has now recorded its 13th consecutive annual increase in AUM, following two years of contraction earlier in the last decade. This momentum has been largely supported by steady inflows into equity schemes, particularly via SIPs.
Among categories, equity-oriented schemes continued to dominate flows in 2025, registering uninterrupted monthly net inflows since March 2021. Of the total inflows this year, around ₹3.22 trillion went into equity schemes, while nearly ₹3 trillion flowed into debt funds. Arbitrage funds, index funds and exchange-traded funds (ETFs) also witnessed strong investor interest.
Market performance further boosted sentiment, with the Nifty 50 rising 8.4% and the BSE Sensex gaining nearly 10% in 2025 so far.
SIP contributions remained the backbone of industry inflows, consistently exceeding ₹29,000 crore per month between September and November and hitting an all-time high of ₹29,529 crore in October. Annual SIP investments crossed ₹3.03 trillion, the highest ever recorded.
Harsh Jain, Co-founder and COO of Groww, said the steady rise in SIP inflows points to a fundamental shift in investor behaviour, with SIPs increasingly becoming the default investment route across income groups, particularly among younger investors.
On the debt side, flows were supported by attractive yields, expectations of a softer interest rate cycle and the increasing use of debt funds for short-term cash management and portfolio diversification, Srivastava said.
Gold funds also gained traction, attracting inflows of ₹31,300 crore as investors sought safety amid economic uncertainty, geopolitical risks and tax changes. The AUM of gold funds more than doubled, rising from ₹44,595 crore in December 2024 to ₹1.10 trillion in November 2025.
On the regulatory front, Sebi introduced reforms to the mutual fund expense framework through the Base Expense Ratio (BER), excluding statutory levies such as STT and GST from core costs. Brokerage caps were reduced and the additional exit load introduced in 2018 was withdrawn. The new rules will come into effect from April 1 next year, aimed at enhancing transparency for investors.
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