Mumbai, December 23 (IANS). The Assets Under Management (AUM) of the Indian mutual fund industry is expected to cross Rs 300 lakh crore by 2035. It is benefiting from the adoption of digitalization by Gen Z, women and small-town households, who are preferring long-term investments through SIPs. This information was given in a report released on Tuesday.
The growth rate of India’s mutual fund industry has been quite strong in 2025. During this period, AUM has increased to Rs 81 lakh crore by November 2025, which was Rs 68 lakh crore in November 2024. It has almost tripled in the last five years and during this period it has registered an increase at a compound annual growth rate (CAGR) of 21.91 percent.
The ICRA Analytics report said growth in net inflows, strong market performance and increased participation of retail investors and financialization of savings have contributed significantly to digitization and led to steady growth in AUM.
In May 2025, the AUM of the industry was close to Rs 70 lakh crore, which has crossed Rs 80 lakh crore in the next six months i.e. by November 2025.
It was told in the report that in such a situation, many market participants believe that if the capital inflow continues like this, then in the next few years India’s AUM will exceed Rs 100 lakh crore.
“The long-term outlook beyond Rs 100 lakh crore points to even more transformative growth. Despite the geopolitical situation and global uncertainties, the domestic mutual fund industry has displayed optimism towards the growth prospects of the Indian economy,” said Ashwini Kumar, senior vice president and head of market data, ICRA Analytics.
AUM of open-ended equity funds has quadrupled in 5 years to Rs 36 lakh crore in November 2025 from Rs 9 lakh crore in November 2020.
It has increased by 17.45 percent on an annual basis and in November 2024 it was Rs 30 lakh crore.
“Flexi-cap funds have witnessed strong YoY growth due to a combination of strategic flexibility, diversified investments and favorable market conditions. The flexi-cap fund category is followed by multi-cap funds and large and mid-cap fund categories, which have grown 24.78 per cent and 22.78 per cent respectively on YoY basis,” Kumar said.
The AUM of debt funds also increased by 14.82 percent on an annual basis to Rs 19 lakh crore in November 2025 from Rs 17 lakh crore in November 2024.
Talking about the performance of equity funds, small cap funds recorded the maximum growth over the 5 and 10 year periods, registering a CAGR of 24.91 per cent and 16.70 per cent respectively (as on November 30).
Systematic Investment Plans (SIPs) have emerged as one of the strongest and most reliable engines of growth for the Indian mutual fund industry.
By November 2025, SIP AUM had reached Rs 16.53 lakh, which is more than 20 per cent of the total AUM of the mutual fund industry. This shows the important role of SIP in promoting long-term asset accumulation.
–IANS
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