Total Mutual Funds And Their AUM In India
08 Dec 2025 7 mins Mutual Funds
In the fast-evolving landscape of Indian finance, mutual funds have emerged as a preferred investment vehicle for millions of individuals. As of 2023, the mutual fund market in India is not just substantial but is also witnessing unprecedented growth. This article delves into the total mutual funds and their Assets Under Management (AUM) in India, highlighting key statistics, growth trends, and actionable insights for potential investors. Download mutual fund investment app now to start your investment journey.
Understanding Mutual Funds in India
Mutual funds pool money from multiple investors to invest in various financial instruments like stocks, bonds, and other securities. The primary goal is to generate returns for investors based on the performance of the underlying assets. In recent years, mutual funds have gained popularity due to their potential for higher returns compared to traditional saving instruments. The structure of mutual funds allows for professional management and diversification, which are critical for risk mitigation.
How Many Mutual Funds Are There in India?
As of October 2023, there are 44 mutual fund houses registered with the Securities and Exchange Board of India (SEBI), offering a diverse range of over 1,300 mutual fund schemes. This number reflects the growing interest in mutual funds as a viable investment option. The variety of schemes allows investors to choose based on their risk appetite, investment horizon, and financial goals. For instance, investors can select from equity funds, debt funds, index funds, and hybrid funds tailored for various risk profiles.
Total AUM of Mutual Funds in India
The total AUM of mutual funds in India has reached approximately ₹39.42 lakh crores (around $473 billion) as of September 2023. This represents a significant increase from the previous year and showcases the growing confidence of investors in mutual funds as a robust investment option. The AUM growth can be attributed to several factors, including rising financial literacy, increasing disposable incomes, and a shift towards structured investment approaches. Notably, the growth in AUM reflects not just higher inflows but also the market performance of the underlying assets, which has been buoyant in recent years.
Growth of the Mutual Fund Industry in India
The mutual fund industry in India has witnessed remarkable growth over the past decade. The following are some key factors contributing to this growth:
Increased Financial Literacy: Initiatives by both the government and private sector have improved awareness about mutual funds and their benefits. Educational campaigns and digital tools have empowered investors to make informed decisions.
Regulatory Support: SEBI has implemented several measures to enhance transparency and protect investor interests, boosting confidence in the mutual fund market. Recent regulations mandate better disclosures and periodic reporting, ensuring that investors are well-informed.
Technological Advancements: The advent of digital platforms has made investing in mutual funds more accessible to the average investor. With mobile applications and online portals, investors can easily track their investments, perform transactions, and receive real-time updates.
Statistical Overview of Mutual Fund Growth
Between 2019 and 2023, the mutual fund sector in India has seen a compound annual growth rate (CAGR) of approximately 15%. The following statistics illustrate this growth:
Year | Total AUM (in ₹ lakh crores) | Number of Mutual Fund Schemes |
|---|---|---|
2019 | 27.42 | 1,025 |
2020 | 30.10 | 1,050 |
2021 | 35.04 | 1,150 |
2022 | 38.50 | 1,250 |
2023 | 39.42 | 1,300 |
Mutual Fund Assets and Market Dynamics
The mutual fund market in India has evolved into a complex ecosystem characterized by various asset classes and investment strategies. The growth of mutual fund assets can be attributed to both retail and institutional investments. Retail investors, driven by SIP (Systematic Investment Plan) options, have significantly contributed to the inflow of funds. The SIP model allows investors to start with small amounts, making it accessible for a broader audience.
Retail Participation in Mutual Funds
Retail participation has been a game-changer for the mutual fund industry. With SIPs becoming increasingly popular, the number of SIP accounts has surged, reaching over 5 crore. This trend reflects a shift in the investment culture, with more individuals opting for disciplined and regular investing rather than lump-sum investments. Data shows that SIP inflows have consistently contributed to the monthly AUM growth, indicating a stable source of capital for mutual funds. For example, in August 2023 alone, SIP contributions reached an all-time high of ₹13,000 crores, demonstrating strong investor confidence.
Institutional Investments
Institutional investors, including banks, insurance companies, and pension funds, also play a crucial role in the mutual fund market. Their participation enhances liquidity and stability in the market, providing a solid foundation for growth. The growing AUM from both retail and institutional investors indicates a robust and resilient mutual fund landscape. Institutional investments tend to be larger and more strategic, often focusing on long-term growth and stability, which can significantly impact the overall performance of mutual funds.
Actionable Steps for Investing in Mutual Funds
As the mutual fund industry continues to thrive, it's essential for investors to make informed decisions. Here are some actionable steps to consider:
Assess Your Financial Goals: Define your financial objectives, risk tolerance, and investment horizon before selecting a mutual fund. Consider factors such as your age, income, and future financial needs.
Research Fund Performance: Analyze historical performance, expense ratios, and the fund manager's track record to gauge a fund's suitability. Utilize tools and resources available on financial websites for comparative analysis.
Diversify Your Portfolio: Consider investing in a mix of equity, debt, and hybrid funds to balance risk and return. A diversified portfolio can help mitigate risks associated with market volatility.
Stay Informed: Keep abreast of market trends and economic indicators that may impact mutual fund performance. Follow financial news, subscribe to newsletters, and consider joining investment forums to exchange insights.
Frequently Asked Questions
What is the total AUM of mutual funds in India as of 2023?
The total AUM of mutual funds in India is approximately ₹39.42 lakh crores as of September 2023.
How many mutual fund schemes are currently available in India?
There are over 1,300 mutual fund schemes available in India from 44 registered mutual fund houses.
What factors contribute to the growth of mutual funds in India?
Key factors include increased financial literacy, regulatory support from SEBI, and technological advancements that have made investing easier. Additionally, the rise of digital platforms has significantly lowered the barriers to entry for new investors.
How can I start investing in mutual funds?
Investing in mutual funds can be started by assessing your financial goals, researching funds, and using platforms that facilitate investments. Many fund houses provide online portals where you can complete the investment process in a few simple steps.
What is the typical return on mutual funds?
Returns on mutual funds vary based on the type of fund and market conditions. Historically, equity mutual funds have offered higher returns compared to debt funds. For instance, over the past decade, equity funds have delivered an average annual return of around 12-15%, while debt funds typically yield between 7-9% annually.
Key Insights and Call to Action
The mutual fund industry in India is experiencing robust growth, with a total AUM of ₹39.42 lakh crores.
There are over 1,300 mutual fund schemes catering to diverse investor needs.
Retail participation through SIPs is driving significant inflows into mutual funds.
Investors should assess their goals, research fund options, and diversify their portfolios for optimal returns.
As the mutual fund landscape continues to evolve, it presents numerous opportunities for investors. Engage with this dynamic market, stay informed, and consider consulting a financial expert for tailored advice. Share your thoughts in the comments below or subscribe to our newsletter for more insights!
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Author - Abhishek Sonawane
Abhishek Sonawane, an MBA graduate from the prestigious Indian Institute of Management Visakhapatnam (IIMV), brings over ten years of experience in the finance domain. His extensive background includes various roles in financial management and strategy, providing him with a comprehensive understanding of the financial landscape. Abhishek’s expertise and dedication to financial education make him an authoritative voice in personal finance, helping readers make informed financial decisions.
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