India’s mutual fund industry witnessed a significant expansion in FY25, with assets under management (AUM) soaring by 23% to reach a record Rs 65.74 lakh crore. The sharp increase highlights the growing investor confidence and sustained inflows into various fund categories amid improving market conditions.
According to industry data, the rise in mutual fund assets was primarily driven by strong participation from retail and institutional investors. Equity-oriented funds played a key role in the growth, benefiting from robust stock market performance and increased investor preference for systematic investment plans (SIPs).
Debt mutual funds also experienced notable inflows as investors sought stable returns amid fluctuating interest rates. Additionally, hybrid and exchange-traded funds (ETFs) contributed to the overall expansion of AUM, reflecting diversified investment strategies across different asset classes.
Financial experts attribute the surge to multiple factors, including rising disposable income, better financial awareness, and favorable government policies supporting the mutual fund sector. The trend suggests that investors are increasingly viewing mutual funds as a viable tool for wealth creation and long-term financial planning.
Industry leaders expect the momentum to continue, with further innovations in fund offerings and digital investment platforms enhancing accessibility for retail investors. As FY25 progresses, mutual fund companies and regulatory authorities will likely focus on sustaining this growth while ensuring investor protection and market transparency.
