Mutual fund industry ends FY25 with record Rs 65.74 lakh crore AUM, up 23 pc

New Delhi, May 19 (IANS) The mutual fund (MF) industry ended fiscal 2025 on a high note, with assets under management (AUM) hitting a record Rs 65.74 lakh crore in March 2025, as per the Association of Mutual Funds in India’s (AMFI) annual report released on Monday.

This marked a strong 23.11 per cent rise compared to Rs 53.40 lakh crore in March 2024.

This growth came despite a volatile stock market, showing that investors stayed committed to their financial goals.

Venkat N Chalasani, CEO of AMFI, said the outlook remains positive, with more investors entering the market and macroeconomic conditions staying supportive.

The increase in AUM was supported by mark-to-market (MTM) gains and steady inflows throughout the year.

During the fiscal year, domestic mutual funds saw total inflows of Rs 8.15 lakh crore, the report said.

Most of this came into equity-oriented schemes, which attracted Rs 4.17 lakh crore -- indicating continued investor preference for long-term growth.

Debt schemes also made a strong comeback, seeing inflows of Rs 1.38 lakh crore after facing outflows for the past three years.

AMFI said low interest rates and expectations of future rate cuts helped boost interest in debt funds.

Another highlight was the surge in retail participation. The total number of mutual fund folios jumped by 32 per cent to a record 23.45 crore in FY25, up from 17.78 crore in FY24.

Equity-oriented schemes accounted for the majority of these, with their folios rising by over 33 per cent to 16.38 crore.

Hybrid schemes also saw healthy growth, while index funds and ETFs grew the fastest, with a 48 per cent rise in folios.

Systematic Investment Plans (SIPs) played a big role in this growth story. SIP contributions rose sharply by 45.24 per cent to Rs 2.89 lakh crore in FY25.

This not only reflected rising investor confidence but also boosted the share of SIP assets to Rs 13.35 lakh crore -- nearly 20 per cent of the total mutual fund industry’s AUM.

The number of SIP accounts and contributions both rose significantly during the year. AMFI noted a growing trend of long-term investing.

A higher proportion of SIP assets were held for more than five years, indicating that investors are increasingly embracing disciplined wealth creation.

The report also highlighted that younger investors preferred a more aggressive investment approach, while older investors focused on risk management and diversification.

Despite India’s mutual fund penetration still being low compared to developed nations, the industry’s performance in FY25 shows rising awareness and trust among investors.

--IANS

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