Managed Investments Industry Set to More Than Double by 2030
India’s managed investments industry is projected to expand sharply over the next five years, with assets under management expected to touch Rs 455 lakh crore by March 2030, according to a report released by Crisil Intelligence on Monday.The report estimates that total assets across mutual funds and alternative investment funds stood at Rs 212 lakh crore as of March 2025. This represented nearly 64 per cent of India’s GDP at the time.
By March 2030, the industry’s asset base is projected to account for nearly 73 per cent of the country’s projected GDP, reflecting a structural deepening of capital markets and a steady financialization of household savings.
Managed Funds Outpace Time Deposits in Growth
Over the five years ending March 2025, managed fund assets recorded a compound annual growth rate of approximately 18 per cent. In comparison, time deposits grew at about 11 per cent during the same period.This divergence has led to a significant shift in savings patterns. Managed funds now account for nearly 106 per cent of outstanding time deposits, underscoring a move away from traditional savings instruments toward market-linked and professionally managed products.
The combined share of mutual funds and equity in household savings increased from 4 per cent in 2020 to 15 per cent in 2025, indicating a marked rise in retail participation and risk appetite.
AIFs Emerge as Fastest-Growing Segment
Alternative investment funds have emerged as the fastest-growing category within the managed investments landscape.AIF commitments rose from Rs 3.70 lakh crore in March 2020 to Rs 13.49 lakh crore by March 2025, registering a compound annual growth rate of around 30 per cent. Their share in the overall managed funds industry is projected to increase from 4 per cent in March 2020 to 9 per cent by March 2030.
As of December 2025, total commitments to AIFs stood at approximately Rs 15.74 lakh crore. More than 1,700 AIFs have been registered, with nearly 63 per cent launched after April 2021.
Retirement and Insurance Assets Continue to Expand
Retirement funds and life insurance assets have also witnessed steady expansion, supported by the formalization of the economy, rising income levels, and policy measures such as the new security code and the anticipated 8th Pay Commission.As of March 2025, retirement fund assets stood at Rs 53.39 lakh crore, while life insurance assets under management reached Rs 67.79 lakh crore.
REITs and InvITs Gain Investor Traction
Real estate investment trusts and infrastructure investment trusts are increasingly gaining traction as yield-oriented investment vehicles.Their combined assets grew from Rs 2.60 lakh crore in March 2020 to Rs 7.78 lakh crore by March 2025, reflecting a compound annual growth rate of around 25 per cent.
With multiple segments of the managed investments ecosystem expanding simultaneously, the report highlights a broad-based transformation in India’s savings and investment landscape, positioning the industry for substantial growth by the end of the decade.
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