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Mumbai: The average SIP ticket size — or the average assets under management (AUM) per SIP folio — has reached an all-time high of ₹2,966 as of June 2025, according to data shared by Franklin Templeton Mutual Fund. This marks a major recovery and surpasses the previous peak of ₹2,861 recorded in December 2019, just before the onset of the COVID-19 pandemic.
This latest figure reflects a 33% increase from the recent low of ₹2,216 in December 2022, when investor sentiment was still recovering from market volatility, inflation concerns, and global uncertainties.
📈 Strong Comeback in SIP Investments
The rise in SIP ticket size indicates renewed confidence among retail investors and a growing appetite for long-term wealth creation through mutual funds. Systematic Investment Plans (SIPs) remain a preferred mode of investment for individual investors due to their disciplined and rupee-cost-averaging approach, especially in volatile markets.
The upward trend also aligns with a broader increase in mutual fund participation across India, aided by digitisation, financial awareness initiatives, and improved market performance.
🧾 Retail Investors Prefer Equity
The data also sheds light on investment patterns across investor categories:
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Individual investors continue to show a strong preference for equities, allocating a significant 87% of their mutual fund AUM to equity-oriented schemes.
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Their remaining portfolio is spread across debt (8%), liquid/money market schemes (2%), and ETFs/Funds of Funds (3%).
In contrast, institutional investors maintain a more diversified and conservative allocation:
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28% in liquid and money market schemes
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28% in ETFs and FoFs
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25% in debt-oriented funds
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Only 19% in equity-oriented schemes
This distinction highlights the relatively aggressive equity orientation of individual investors compared to the more balanced and liquidity-focused approach of institutional investors.
📊 Sectoral, Thematic Funds Lead the Pack
Among equity fund categories, sectoral and thematic funds have outperformed in terms of net inflows as well as AUM growth:
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In the one-year period ending June 2025, these funds recorded the highest net sales of ₹1.04 lakh crore, followed by:
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Flexi cap funds: ₹56,300 crore
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Small cap funds: ₹45,700 crore
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In terms of AUM:
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Sectoral and thematic funds lead with a total AUM of ₹5.10 lakh crore
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Followed by flexi cap funds at ₹4.94 lakh crore
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And mid cap funds at ₹4.32 lakh crore
This data suggests growing investor interest in sector-specific and theme-driven strategies, often driven by trends in technology, manufacturing, renewable energy, and financial services.
🪙 Passive AUM Sees Robust Growth
The passive investing trend continues to gain momentum in India:
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Passive AUM grew 21% year-on-year, rising from ₹10.22 lakh crore in June 2024 to ₹12.33 lakh crore in June 2025.
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Passive folios have seen a 17-fold increase over the past five years, reflecting a massive shift toward low-cost, index-based investing strategies.
The growth of passive funds is being driven by both institutional investors and retail participants looking for cost-efficient options amid rising awareness about index investing.
🧠 Insights and Implications
The increase in average SIP ticket size and equity allocation among individual investors reflects a maturing retail investor base. With rising incomes, broader access to investment platforms, and continued market education, Indian investors are gradually moving from traditional instruments like fixed deposits to more market-linked solutions.
Meanwhile, the growth in passive AUM and continued institutional reliance on liquid and ETF products indicates a structural diversification in the Indian mutual fund space.
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#MutualFunds #SIPGrowth #IndianMarkets #PassiveInvesting #RetailInvestors #MutualFundIndia #EquityFunds #FlexicapFunds #SectoralFunds #ThematicFunds #InvestmentTrends #SIP2025 #AMUGrowth #FinancialInclusion #InvestSmart
