Mutual Fund AUM Surges 6x in a Decade, Hits ₹66.93 Lakh Crore
The Indian mutual fund industry has witnessed a remarkable surge in assets under management (AUM), growing sixfold over the past decade to reach ₹66.93 lakh crore. This growth underscores the increasing participation of retail and institutional investors, driven by economic progress, financial literacy, and innovation in investment solutions.
Equities Lead Market Share
Equity mutual funds continue to dominate, holding 60.19% of the total AUM, followed by debt funds at 26.77%, hybrid funds at 8.58%, and other categories making up 4.45%.
Passive funds saw a significant expansion, reaching ₹10.85 lakh crore and capturing a 16% market share, while active funds retained ₹56.08 lakh crore. Prateek Agrawal, MD & CEO of MOAMC, attributed this growth to India’s economic progress and rising financial literacy. “Innovation, technology, and tailored investment solutions will be key to sustaining growth and navigating future opportunities,” he said.
Equity Funds Attract Strong Inflows
The industry recorded net inflows of ₹199,000 crore in the December quarter, with equity funds leading at ₹105,000 crore. Passive equity funds followed with ₹29,000 crore in net inflows.
Active debt funds saw ₹47,000 crore in net inflows, whereas passive debt funds reported net outflows of ₹9,000 crore. “Understanding fund movement is essential for informed investment decisions. Our latest report highlights the dominance of Active Flexi Cap and Mid Cap funds, along with the rise of passive funds to 16% market share,” said Pratik Oswal, Chief of Business, Passive Funds, MOAMC.
Broad-Based Funds Gain Traction
Broad-based funds captured 69% of the market, with active broad-based funds increasing their share from 57% to 70% quarter-on-quarter (QoQ).
In contrast, passive broad-based funds saw their share fall from 90% to 66%. Among active equity funds, Flexi Cap and Mid Cap funds led inflows, each attracting ₹15,000 crore. Investors preferred passive large-cap funds, which received 84% of net inflows, though some shifted toward mid-cap and small-cap categories.
Thematic Funds See Selective Growth
Net inflows into thematic mutual funds declined from ₹17,000 crore to ₹14,000 crore. However, consumption and infrastructure funds attracted ₹4,500 crore. Emerging themes in passive thematic funds included capital markets, electric vehicles, and tourism.
Debt Market Trends
Constant Maturity funds recorded the highest net inflows at ₹37,000 crore, followed by corporate bond funds (₹6,000 crore) and gilt funds (₹4,000 crore). Target Maturity funds experienced net outflows of ₹8,000 crore.
Liquid funds contributed 41% of net flows, totaling ₹15,000 crore. The low-duration category recorded ₹7,500 crore in inflows, while ultra-short duration funds received ₹7,000 crore.
Hybrid and International Fund Activity
Multi-Asset funds led the hybrid category, securing 48% of net inflows, followed by Balanced Advantage funds (25%). Aggressive Hybrid funds also gained traction, increasing their inflows from 4% to 12% QoQ.
International funds remained stagnant due to regulatory restrictions on new investments. Active and passive broad-based international funds recorded minor net inflows of ₹1,000 crore each, while passive thematic international funds saw ₹300 crore in net outflows.
The robust growth in mutual fund AUM highlights the sector’s resilience and potential for further expansion. With continued innovation and investor education, the industry is well-positioned for sustained growth in the years ahead.