India AUM grows 17% in 2025, beats Asia-Pacific average by 5 percentage points
Synopsis
India's asset management market grew 17% in 2025 — five percentage points ahead of the Asia-Pacific average — with retail investors driving over 60% of total AUM. A new BCG report flags that the next battle won't be for investors, but for distribution: tech-enabled, localised, and data-driven.
Key Takeaways
India's AUM grew 17 per cent in 2025 , beating the Asia-Pacific average of 12 per cent .
Global AUM crossed $147 trillion in 2025, up 11 per cent year-on-year, per the BCG report.
Retail products account for 61 per cent of total Indian AUM, one of the highest retail-dominated ratios in the region.
India's institutional segment — led by pensions at 58 per cent of the segment — grew 23 per cent .
Retail investors drove 61 per cent of global AUM expansion between 2020 and 2025 .
Global industry profit margins remain near 30 per cent , unchanged from 2010 despite tripling of AUM.
India's assets under management (AUM) grew 17 per cent in 2025, outpacing the Asia-Pacific average of 12 per cent, according to a new report by Boston Consulting Group (BCG). The outperformance was driven primarily by surging retail investor participation, with retail products already accounting for 61 per cent of total Indian AUM — making India one of the most retail-dominated asset management markets in the region.
Global AUM Crosses $147 Trillion
Global assets under management crossed $147 trillion in 2025, rising 11 per cent year-on-year, according to the BCG report. Market performance was the predominant driver of this expansion. Over the past 15 years, global AUM has more than tripled and industry revenues have more than doubled, yet profit margins have remained close to 30 per cent — roughly where they stood in 2010.
Asia-Pacific: Retail Outpaces Institutional Growth
Within the Asia-Pacific region, retail business grew at 15 per cent, outpacing institutional growth of 9 per cent, reflecting a structural shift in how individuals engage with financial markets. The region posted the fastest AUM gains globally at 9 per cent annually between 2020 and 2025, supported by strong net inflows. Retail investors accounted for 61 per cent of global AUM expansion over the same five-year period.
India's Institutional Segment Also Deepens
India's institutional business segment showed notable strength alongside the retail surge. Pensions account for 58 per cent of the institutional segment and grew 23 per cent, signalling deepening participation across investor categories. This comes amid a broader global trend of retirement systems redirecting flows as defined contribution plans expand and defined benefit pools mature.
What Industry Leaders Said
Mayank Jha, Managing Director & Partner and Leader, Asset & Wealth Management – Asia Pacific, BCG, said:
Point of View
But the BCG report's real signal is structural: retail dominance at 61% of AUM is a double-edged sword. It reflects genuine financialisation of household savings — a secular trend — but also concentration risk if market sentiment turns and SIP flows reverse, as they briefly did in 2020. The report's warning that 'opportunity alone will not translate into growth' is pointed: India has dozens of asset managers chasing the same retail investor through the same distributor networks. The winners will be those who build proprietary last-mile digital reach, not those who rely on commission-driven intermediaries. Margin stagnation at 30% globally, despite tripling AUM, is the industry's uncomfortable truth — scale has not delivered pricing power.
NationPress
1 May 2026
Frequently Asked Questions
How much did India's AUM grow in 2025?
India's assets under management grew 17 per cent in 2025, according to a BCG report. This was five percentage points ahead of the Asia-Pacific regional average of 12 per cent, driven primarily by retail investor participation.
What is the size of global AUM in 2025?
Global assets under management crossed $147 trillion in 2025, rising 11 per cent year-on-year. Market performance was the primary driver of this expansion, according to the BCG report.
Why is India considered a retail-dominated AUM market?
Retail products account for 61 per cent of total Indian AUM, one of the highest such ratios in the Asia-Pacific region. This reflects growing financialisation of household savings, rising investor awareness, and expanding GDP, according to BCG.
How did India's institutional AUM perform in 2025?
India's institutional segment, led by pensions which account for 58 per cent of the segment, grew 23 per cent in 2025. This signals deepening participation across investor categories beyond just retail.
What does BCG say asset managers must do to capitalise on India's growth?
BCG's Mayank Jha said firms must build scalable, tech-enabled distribution, localise products for India's retail-led market, and invest in digital and data capabilities to reach distributors and investors at scale. He cautioned that opportunity alone will not translate into growth without strong distribution.
