Indian Mutual Fund AUM Seen Crossing ₹300 Trillion by 2035 as Retail Participation Deepens: ICRA Analytics

India’s mutual fund industry is entering a phase of structural expansion, with assets under management (AUM) projected to cross Rs 300 trillion by 2035, driven by rising digital adoption, widening retail participation and a sustained shift toward long-term investing through systematic investment plans (SIPs), according to ICRA Analytics.

The industry closed November 2025 with an AUM of Rs 81 trillion, up sharply from Rs 68 trillion a year earlier, translating into a year-on-year growth of 18.69%. Over the past five years, industry assets have nearly tripled, clocking a compounded annual growth rate (CAGR) of 21.91%. Despite global macro uncertainties, India’s mutual fund AUM crossed the Rs 70 trillion mark in May 2025 and added another ₹10 trillion within six months, underscoring the resilience of domestic inflows.

ICRA Analytics noted that if current inflow momentum and market conditions persist, India could cross the Rs 100 trillion AUM milestone within the next few years. The long-term growth outlook is being shaped by increasing participation from Gen Z investors, women, and households in smaller towns, alongside growing financialization of household savings.

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Equity-oriented schemes continue to anchor asset growth. Open-ended equity fund AUM has quadrupled over five years to Rs 36 trillion in November 2025 from Rs 9 trillion in November 2020, while posting a 17.45% year-on-year increase. Within equities, flexi-cap funds emerged as the fastest-growing category, with assets rising over 25% year-on-year to Rs 5.45 trillion, followed by multi-cap and large & mid-cap funds.

Debt funds also posted steady expansion, with AUM rising nearly 15% year-on-year to Rs 19 trillion. Money market funds recorded the strongest growth in the debt segment, surging over 40%, as investors sought liquidity and stability amid rate uncertainties.

SIPs remained the industry’s most consistent growth engine. SIP AUM reached Rs 16.53 trillion by November 2025, accounting for over 20% of total industry assets, while monthly contributions rose 16.29% year-on-year to Rs 29,445 crore.