#MutualFunds #IndianEconomy #SIP #FinancialLiteracy #InvestmentGrowth #AatmanirbharBharat #FlexiCap #RetailInvestment #FinancialFreedom #B15Cities
New Delhi: — The Indian mutual fund (MF) industry has achieved a monumental milestone, with its Assets Under Management (AUM) now standing at approximately one-third (over 33%) of the total bank deposits in the country as of October 2025. This significant shift underscores a growing preference for capital market investments among Indian savers.
According to data, the MF industry’s assets are close to Rs. 80 lakh crore, a striking comparison to the roughly Rs. 240 lakh crore held in bank deposits. This ratio has grown nearly threefold in a decade, rising sharply from a mere 12.6% in March 2015, highlighting the industry’s accelerated pace of growth.
💰 Individual Investors Drive Superior Growth
The decade-long story of MF AUM growth is one of individual investor empowerment. While the overall industry AUM grew by an impressive 7X in the last 10 years, the AUM from individual investors surged ahead, recording a 9X increase in the same period. This translates to an individual assets’ Compound Annual Growth Rate (CAGR) of 23%, outpacing the overall industry’s 20% CAGR over the last decade.
🎯 SIP Momentum Hits All-Time High
Systematic Investment Plans (SIPs) continue to be the backbone of this retail investment surge, acting as a powerful mechanism for disciplined wealth creation.
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Record Inflows: Monthly SIP inflows reached an all-time high of Rs. 29,529 crore in October 2025, effectively doubling in a less than three-year period.
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YoY Growth: This figure represents a healthy 17% Year-on-Year (YoY) growth compared to Rs. 25,323 crore recorded a year ago.
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SIP Size: The average SIP size has also seen growth, rising from Rs. 2,501 to Rs. 2,989 over the last 12 months, indicating higher conviction among retail investors.
📊 Flexi Cap Schemes Dominate Net Sales
In terms of net inflows, Flexi Cap funds have emerged as the clear frontrunners in the equity segment, demonstrating their appeal for dynamic, market-cap-agnostic investing.
| Equity Category | Net Sales (Last 12 Months) |
| Flexi Cap Funds | Rs. 72,640 crore |
| Sectoral/Thematic Funds | ~Rs. 58,300 crore |
| Small Cap Funds | ~Rs. 52,900 crore |
| Mid Cap Funds | ~Rs. 51,300 crore |
While equity continues to dominate the overall MF portfolio, its share saw a marginal decline. Equity assets accounted for 59.9% of the total MF AUM in October 2025, a slight drop from 60.5% in October 2024. However, in absolute terms, equity assets expanded significantly from Rs. 40.7 lakh crore to Rs. 47.9 lakh crore during this one-year window, reflecting positive net contributions.
🏙️ Expanding Horizons: The Rise of B15 Cities
The democratization of mutual fund investing is evident in the burgeoning growth outside the top 15 (T15) cities. The AUM share from B15 cities (ranked 16-30) has notably increased from 26% in September 2020 to 35% in September 2025. This shows that the industry’s reach is rapidly deepening across non-metro regions. In comparison, the major financial hubs of Mumbai and New Delhi collectively account for a 40% share of the total MF assets.
At the state level, Haryana and Rajasthan have recorded the highest AUM growth rates in the last one year, at 20.85% and 19.54%, respectively, followed by Telangana at 17.64%.
#MutualFunds #IndianEconomy #SIP #FinancialLiteracy #InvestmentGrowth #AatmanirbharBharat #FlexiCap #RetailInvestment #FinancialFreedom #B15Cities
