



What powers India’s ₹80 trillion mutual fund AUMs despite market jitters
Subscribe to enjoy similar stories. In the last 18 months, the Indian equity market has moved in a narrow range. It has never really broken away from its September 2024 highs, nor has it crumbled under the weight of expectations.
In the investing space, testing times like these for the equity market are also tests of resilience for investment products such as mutual funds. The Indian mutual fund industry has undergone an unprecedented expansion in its investor base during the post-2020 market boom. So far, it has held on well.
The gains it has made seem foundational in nature, and its intrinsic appeal has withstood the tapering of returns. In the last five years, mutual funds' assets under management (AUM) have swollen from ₹31 trillion in December 2020 to ₹80.23 trillion in December 2025—a compounded annual rise of a solid 21%. At this rate, effectively, they double in three-and-a-half years.
However, not all of this increase is attributable to individual investors, given that even institutions and companies invest in mutual funds. Having said that, mutual fund investments now make up a greater share of the financial assets of Indian households. According to India’s central bank, as of March 2020, mutual funds had a 7% share in the financial assets of Indian households.
In March 2024, this figure crossed 10% for the first time, and has inched up further in March 2025, according to the latest available data. During this period, the share of bank deposits—which are typically about low post-tax returns, along with low risk—in financial assets of Indian households has dropped from 46.2% to 43.4%. Systematic investment plans (SIPs) are a big reason for these gains, not only from a past perspective, but also from a future
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