India’s mutual fund industry has achieved a historic milestone, with Assets Under Management (AUM) jumping nearly ₹50 lakh crore in just five years. Data from the Association of Mutual Funds in India (AMFI) shows that total AUM reached ₹75.35 lakh crore in July 2025, compared to ₹27.11 lakh crore in July 2020—marking a massive ₹48.24 lakh crore surge.
Retail Investors Power the Growth
One of the biggest reasons behind this rapid rise is the increasing participation of retail investors, especially through Systematic Investment Plans (SIPs).
- SIP accounts have grown steadily, indicating that small, regular investments are now a preferred choice for wealth creation.
- Better financial literacy and easy access through digital platforms have made mutual funds more popular than traditional savings options like fixed deposits.
Record Inflows in July 2025
July 2025 saw record inflows across equity and debt mutual fund schemes:
- Equity funds received ₹42,702 crore—an 81% jump from June and the 53rd straight month of positive inflows.
- Debt funds attracted ₹1.06 lakh crore, driven by short-term investments and corporate participation.
Why This Matters for Investors
The rise in mutual funds’ AUM shows a long-term shift in how Indians invest. The industry’s 20% compound annual growth rate (CAGR) over the past decade outpaces even the U.S. mutual fund market, which grew at 8% during the same period.
Financial experts say this trend could continue as equity markets perform strongly and more people turn to market-linked investment options.
Industry Outlook
- The mutual fund industry is expected to cross ₹100 lakh crore AUM before 2030.
- Government initiatives promoting financial inclusion and continued market growth are likely to fuel the next phase of expansion.
- With digital onboarding and simplified KYC processes, rural and semi-urban participation is also on the rise.
Key Numbers at a Glance
- AUM (July 2020): ₹27.11 lakh crore
- AUM (July 2025): ₹75.35 lakh crore
- 5-Year Growth: ₹48.24 lakh crore
- July 2025 Equity Inflows: ₹42,702 crore
- July 2025 Debt Inflows: ₹1.06 lakh crore
