Retail Participation and SIP Inflows Drive Record Growth
India’s mutual fund industry extended its strong expansion through 2025, adding around Rs 14 lakh crore to its asset base and taking total assets under management to a record Rs 81 lakh crore by the end of November. The growth was led by sustained retail participation and consistently strong systematic investment plan inflows.The industry recorded net inflows of about Rs 7 lakh crore during the year, alongside an increase of 3.36 crore investors. SIP contributions alone accounted for nearly Rs 3 lakh crore, reinforcing their role as the primary driver of long-term inflows.
AUM Rises 21 Percent Year-on-Year
Assets under management grew 21 percent from Rs 67 lakh crore at the end of 2024 to Rs 81 lakh crore by November 2025. While this pace was lower than the 31 percent rise seen in 2024 and the 27 percent growth in 2023, the longer-term trend remained robust.Over the past five years, the industry has collectively added nearly Rs 50 lakh crore to its asset base. This marked the 13th consecutive year of AUM growth, following a brief period of contraction earlier in the last decade, indicating a structural shift toward long-term investing.
Equity and Debt Schemes Attract Strong Inflows
The 49-player mutual fund industry saw total inflows of Rs 7 lakh crore in 2025 till November, supported by steady interest in equity funds, arbitrage funds, index funds, and exchange traded funds.Around Rs 3.22 lakh crore flowed into equity-oriented schemes, while nearly Rs 3 lakh crore was directed toward debt schemes. Equity funds remained the biggest draw, registering uninterrupted monthly net inflows since March 2021.
Net inflows into equity-oriented schemes stood at Rs 3.53 lakh crore, underlining the growing preference for disciplined, long-term investing.
SIPs Remain the Backbone of Industry Flows
SIP contributions continued to provide stability to fund flows throughout the year. Monthly SIP inflows consistently crossed Rs 29,000 crore in September, October, and November, with an all-time high of Rs 29,529 crore recorded in October.On an annual basis, SIP investments crossed Rs 3.03 lakh crore in 2025, the highest level recorded so far, reflecting their increasing adoption across investor segments.
Market Performance Supports Investor Sentiment
Market performance during the year further supported investor confidence. The Nifty 50 rose 8.4 percent in 2025, while the BSE Sensex gained close to 10 percent over the same period, contributing to the expansion in assets under management.Gold Funds See Sharp Rise in Assets
Gold funds also witnessed increased investor interest during the year, attracting inflows of Rs 31,300 crore. Assets under management for gold funds rose sharply from Rs 44,595 crore in December 2024 to Rs 1.10 lakh crore by November 2025, as investors sought diversification and stability.The sustained rise in retail participation, expanding investor base, and consistent adoption of SIPs continued to underpin the mutual fund industry’s long-term growth trajectory in 2025.
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