New Delhi, Dec 28 (NationPress) With increasing engagement from Gen Z, women, and families from smaller urban areas, India's mutual fund sector, particularly systematic investment plans (SIPs), is predicted to experience substantial growth in the upcoming year, having set numerous records in 2025.

In 2025, the Indian mutual fund sector experienced a significant increase, with assets under management (AUM) reaching Rs 81 trillion in November, rising from Rs 68 trillion in November 2024. This represents a year-on-year growth of 18.69 percent and nearly tripling over the last five years with a CAGR of 21.91 percent.

Additionally, investors invested over Rs 3 lakh crore into mutual fund schemes via SIPs by November, marking the first time this milestone was achieved in a calendar year. Data from the Association of Mutual Funds in India (AMFI) indicated that SIP inflows for the year hit Rs 3.04 trillion, a growth from Rs 2.69 trillion in 2024.

SIP inflows for November remained relatively stable at Rs 29,445 crore, according to AMFI statistics. Net equity inflows saw a healthy increase, rising to Rs 29,894 crore in November from Rs 24,671 crore in October. The total assets under management in the industry also grew, reaching Rs 80.80 lakh crore compared to Rs 79.87 lakh crore in the previous month.

SIPs have established themselves as a robust and reliable growth engine for the Indian mutual fund sector. Continuous net inflows, strong market performance, and increasing retail participation, supported by digitization and the financialization of savings, have fueled the consistent rise in AUM, as per ICRA Analytics.

It is anticipated that the assets under management in India's mutual fund industry could exceed Rs 300 trillion by 2035.

Given the current trend, market participants believe that India is on track to surpass the Rs 100 trillion mark in the next few years if the ongoing inflow patterns and market performance continue. Beyond the Rs 100 trillion threshold, the long-term forecast suggests even more transformative growth.

By November 2025, SIP AUM reached Rs 16.53 trillion, representing over 20 percent of the mutual fund industry's total AUM, underscoring their crucial role in enhancing long-term asset accumulation.

In the first ten months of 2025, SIPs contributed to 37 percent of gross inflows into active equity schemes, up from 27 percent in 2024, with active equity schemes capturing around 80 percent of total SIP flows.

Experts note that these investments highlight a positive risk appetite, bolstered by substantial domestic liquidity, strong and persistent retail SIP participation, and a favorable outlook on India's medium-term economic and corporate earnings.

Looking ahead, as uncertainties linger regarding the timing and pace of monetary easing, flows are likely to remain focused on shorter-duration and high-quality strategies, with investors opting to await clearer policy cues before lengthening their duration exposure, experts observed.