Did the Mutual Fund Industry Achieve a Record AUM of Rs 65.74 Lakh Crore in FY25?

New Delhi, May 19 (NationPress) The mutual fund (MF) sector concluded fiscal year 2025 on a remarkable note, achieving an all-time high in assets under management (AUM) of Rs 65.74 lakh crore as of March 2025, according to the Association of Mutual Funds in India (AMFI) annual report published on Monday.

This achievement represents a robust 23.11 percent increase from Rs 53.40 lakh crore recorded in March 2024.

The growth was notable given the fluctuations in the stock market, indicating that investors have remained dedicated to their financial objectives.

Venkat N Chalasani, CEO of AMFI, emphasized that the future looks promising, with more investors entering the market and macroeconomic conditions remaining favorable.

The rise in AUM was bolstered by mark-to-market (MTM) gains and consistent inflows throughout the year.

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

A significant portion of these inflows was directed towards equity-oriented schemes, which attracted Rs 4.17 lakh crore, highlighting a sustained preference for long-term growth among investors.

Debt schemes also made a notable recovery, seeing inflows of Rs 1.38 lakh crore after experiencing outflows for the previous three years.

AMFI attributed the increased interest in debt funds to low interest rates and expectations of future rate reductions.

Another significant highlight was the rise in retail participation. The total number of mutual fund folios surged by 32 percent to a record 23.45 crore in FY25, up from 17.78 crore in FY24.

Equity-oriented schemes comprised the majority of these, with their folios increasing by over 33 percent to 16.38 crore.

Hybrid schemes also demonstrated healthy growth, while index funds and ETFs recorded the fastest growth, with a 48 percent increase in folios.

Systematic Investment Plans (SIPs) were instrumental in this growth narrative. SIP contributions rose sharply by 45.24 percent to Rs 2.89 lakh crore in FY25.

This not only reflected increased investor confidence but also raised the share of SIP assets to Rs 13.35 lakh crore—nearly 20 percent of the total mutual fund industry’s AUM.

The number of SIP accounts and contributions both witnessed a significant rise during the year. AMFI noted a growing trend towards long-term investing.

A higher proportion of SIP assets was held for over five years, indicating a shift towards disciplined wealth creation among investors.

The report also underscored that younger investors favored a more aggressive investment strategy, while older investors prioritized risk management and diversification.

Even though India’s mutual fund penetration remains low compared to developed countries, the industry’s performance in FY25 reflects a growing awareness and trust among investors.