IANS Year Ender 2025: Mutual fund, SIP investments to remain strong as participation surges

New Delhi, Dec 28 Amid rising participation from Gen Z, women and households from smaller cities and towns, India’s mutual fund industry, especially the systematic investment plans (SIPs), are set to witness robust growth next year after breaking several records in 2025.

In 2025, the Indian mutual fund industry saw a remarkable expansion, with assets under management (AUM) climbing to Rs 81 trillion in November, up from Rs 68 trillion in November 2024 — registering a year-on-year growth of 18.69 per cent and nearly tripling over the past five years posting a CAGR of 21.91 per cent.

Moreover, investors poured over Rs 3 lakh crore into mutual fund schemes through systematic investment plans until November, for the first time in a calendar year. The data from Association of Mutual Funds in India (AMFI) showed that SIP inflows in the calendar year touched Rs 3.04 trillion (lakh crore) for the first time, up from Rs 2.69 trillion in 2024.

SIP inflows in the month of November remained almost steady at Rs 29,445 crore, according to AMFI data. Net equity inflows saw a healthy rise, increasing to Rs 29,894 crore in November from Rs 24,671 crore in October. The industry’s total assets under management also grew, touching Rs 80.80 lakh crore compared to Rs 79.87 lakh crore in the previous month.

SIPs have emerged as one of the strongest and most reliable engines of growth for the Indian mutual fund industry. Sustained net inflows, strong market performance, and deepening retail participation, aided by digitisation and financialisation of savings, have contributed to the steady surge in AUM, according to ICRA Analytics.

India’s mutual fund industry’s assets under management (AUM) may surpass Rs 300 trillion by 2035, it added.

Given this trajectory, market participants are of the opinion that India is well‑positioned to cross the Rs 100 trillion threshold within the next few years, if current inflow trends and market performance persist. Beyond Rs 100 trillion, the long‑term outlook points to even more transformative growth.

SIPs accounted for 37 per cent of gross inflows into active equity schemes in the first 10 months of 2025, up from 27 per cent in 2024, with active equity schemes garnering around 80 per cent of total SIP flows.

The investments underscore a constructive risk appetite, supported by deep domestic liquidity, strong and sticky retail SIP participation, and optimism about India’s medium-term economic and corporate earnings outlook, said experts.

Going ahead, with uncertainty still prevailing around the timing and pace of monetary easing, flows are likely to remain anchored in shorter-duration and high-quality strategies, with investors preferring to wait for clearer policy signals before extending duration exposure, experts noted.

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