Mutual Fund Assets Surge 23% to Record High in FY25

New Delhi, May 19 (PTI) Mutual fund assets surged 23 per cent or over Rs 12 lakh crore year-on-year to reach a record of Rs 65.74 lakh crore in FY25, propelled by robust net inflows and mark-to-market gains amid buoyant equity and debt markets.

In comparison, the assets under management of the industry stood at Rs 53.40 lakh crore in March 2024.

"The asset base expanded partly owing to mark-to-market (MTM) gains, spurred by equity markets clocking positive returns, as reflected in the Nifty 50 TRI and Sensex TRI rising 6 per cent and 5.9 per cent, respectively. Debt markets also contributed positively through MTM gains, supported by favourable yield movements," according to the Association of Mutual Funds in India's (Amfi) annual report released on Monday.

Also, the increase in AUM was attributed to net inflows summing up to Rs 8.15 lakh crore during fiscal 2025.

The sharp surge in asset base was also reflected in the growing numbers of investors, mutual funds, with the number of folios reaching an all-time high of 23.45 crore and an investor base of about 5.67 crore.

A notable trend in the fiscal was a 33.4 per cent year-on-year increase in folios of equity-oriented schemes to 16.38 crore. The scheme continued to constitute a lion's share of the folios at 70 per cent.

Also, the folios of hybrid schemes increased by 16 per cent to 1.56 crore, while other schemes, including index funds and exchange-traded funds (ETFs), surged 48.3 per cent to 4.15 crore folios. In contrast, debt-oriented scheme folios declined 3 per cent to 69.5 lakh.

The systematic investment plans (SIPs) were popular among investors as flows into this segment rose sharply, with yearly contributions rising by 45.24 per cent to Rs 2.89 lakh crore in FY25. This substantial increase, along with MTM gains, saw SIP assets rise 24.6 per cent to Rs 13.35 lakh crore, thereby accounting for 20.31 per cent share of the overall MF industry's AUM.

As of March 2025, the industry had a total of 5.34 crore unique investors. Of this, 26 per cent or 1.38 crore were women.

"This represents an increase from 24.2 per cent in March 2024, underscoring the growing financial independence and awareness among women. The rise in literacy rates and the growing presence of women in the workforce have been instrumental in enhancing their economic contributions and, as a result, women are now emerging as a key participant in the MF investor base," the report said.

Equity-oriented mutual funds saw a record inflow of Rs 4.17 lakh crore, the highest ever in a financial year. The net inflows during the year exceeded twice the net inflows in the previous year. This, combined with valuation gains, propelled the AUM of equity-oriented schemes by 25.4 per cent to Rs 29.45 lakh crore at March-end 2025.

The surge in inflow across sub-categories within equity-oriented schemes was partly attributable to the successful launch of new fund offers (NFOs) during the year. A total of 70 NFOs in the equity category were launched in fiscal 2025, collectively mobilising Rs 85,244 crore, marking an increase from the 58 schemes launched in fiscal 2024, which garnered Rs 39,297 crore.

Debt MFs registered net inflows of Rs 1.38 lakh crore last fiscal against net outflows of Rs 0.23 lakh crore in fiscal 2024. The category's AUM jumped 20.5 per cent to Rs 15.21 lakh crore in March 2025 from Rs 12.62 lakh crore in March 2024.