Mutual fund assets surge to nearly one-third of the bank deposits

The MF assets under management (AUM) at Rs 72.2 trillion is almost a third of the total bank deposits of Rs 232 trillion in May 2025

Mutual fund (MF) assets as a percentage of total bank deposits have nearly doubled over the past eight years, highlighting a growing investor appetite for equities and other financial assets.

 

As of May 2025, mutual fund assets under management (AUM) stood at ₹72.2 trillion — almost a third of the total bank deposits, which amounted to ₹232 trillion. This marks a significant jump from March 2017, when MF AUM was just 16 per cent of bank deposits. Except for a brief slump during the pandemic in 2020, the ratio has shown consistent growth.

 

The post-Covid period has seen especially strong momentum for mutual funds, driven by a robust equity market rally. This has led to growth on two fronts: mark-to-market gains on existing portfolios and the addition of new investors.

 

Since March 2020, MF AUM has more than tripled, while bank deposits have grown by just 71 per cent over the same period.

 

Industry experts attribute the surge to the growing popularity of systematic investment plans, which have brought steady inflows into mutual funds regardless of market volatility. Additionally, the rapid increase in smartphone and internet penetration, along with the rise of user-friendly mobile investing platforms, has further boosted mutual fund adoption.

 

Despite this growth, the overall mutual fund investor base remains modest. As of March 2025, there were only 54.2 million unique mutual fund investors in the country.