The report additional highlights that India’s mutual fund AUM hit Rs 65 trillion in FY25, rising at a 24% CAGR from FY20–FY25. The variety of mutual fund folios jumped to 234 million, indicating widening retail participation.
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SIP contributions soared from Rs 0.4T in FY17 to Rs 2.9T in FY25, a 28% CAGR. Round 42% of 30 lakh new SIPs in Nov’23 have been enabled by fintech platforms. Between Apr–Aug ’24, Tier-2 & Tier-3 cities added 1.2 crore new mutual fund investor accounts, with 54% of all SIP accounts now coming from B-30 cities.
Investing platforms like Groww, Paytm Cash, ET Cash revolutionized mutual fund entry with Rs 500 SIPs, digital onboarding, and mobile-first investing. Adoption of robo-advisors can also be streamlining portfolio curation and making funding recommendation inexpensive and accessible, the report stated
The equity-oriented AUM grew at a 28.7% CAGR (FY22–FY25), pushed by bullish tendencies in small and midcap funds as these classes have delivered sturdy returns in FY25, encouraging traders to shift to equity-based investments.Alternatively, debt-oriented funds rebounded in FY25 with AUM reaching Rs 17T, exhibiting steady funding desire. Regardless of fairness dominance, debt MFs maintain their floor, providing stability and predictable returns in unsure charge environmentsHybrid funds present fairness’s progress potential with debt’s stability, serving to traders mitigate dangers. Even in flat markets, balanced benefit funds have maintained steady returns of 8-10% yearly.
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AMCs reminiscent of SBI MF, ICICI Prudential MF, HDFC MF, and Nippon MF collectively account for almost 50% of the overall AAuM in FY25. “We’ve got momentum on our aspect. Our product launches have been well timed. Over time, we have expanded our attain to newer corners of the nation and bolstered our SIP e-book. Leveraging the guardian SBI’s community, together with collaborations with different distributors, has been instrumental in our progress,” stated Joint CEO, SBI Mutual Fund.
