SIPs, AUM, folio count: Top mutual fund trends from 2025 AMFI annual report

Despite bouts of volatility, investors stayed invested, demonstrating a long-term commitment to their financial goals, AMFI said in the report.

Despite a topsy turvy stock market, India's mutual fund industry remained buoyant with assets under management (AUM) reaching a record high, supported by steady inflows and folio count hitting an all-time peak.

 

The AUM of the industry hit a record ₹65.74 trillion in March 2025, a 23.11 per cent rise compared to ₹53.40 trillion in March 2024, according to the 2025 AMFI Annual Report. The mark-to-market (MTM) gains and sustained investor interest, even when markets slid in the second half, were the primary drivers of the AUM. 

 

Domestic mutual funds saw an inflow of ₹8.15 trillion during fiscal 2025, the report noted. "Despite bouts of volatility, investors stayed invested, demonstrating a long-term commitment to their financial goals."  In this, inflows were mainly skewed in favour of equity-oriented schemes that saw inflows worth ₹4.17 trillion. In a sign of diversification of investments, inflows into debt schemes stood at ₹1.38 trillion, rebounding after three years of successive outflows. Low interest rates, expectations of further rate cuts, and a decline in yields were the key drivers in the debt category, AMFI said. 

 

 

However, the mutual fund body noted that India’s MF penetration is significantly lower than that of many developed economies.  

   

MF folios jump 32% in FY25

The total number of mutual fund folios rose sharply by 32 per cent to 23.45 crore in fiscal 2025, up from 17.78 crore in fiscal 2024, indicating strong participation.

 

A key driver of this growth was a 33.4 per cent on-year rise in folios under growth/equity-oriented schemes, which increased to 16.38 crore, compared with 12.28 crore in the previous year. Equity schemes continued to account for the majority share, making up around 70 per cent of the total folios.

 

Hybrid schemes also saw healthy growth, with folios rising 16.1 per cent. Meanwhile, other schemes — including index funds and exchange-traded funds (ETFs) — surged 48.3 per cent.

 

In contrast, income/debt-oriented schemes witnessed a decline, with folios falling 3 per cent to 69,49,759 during the fiscal. 

SIP inflows rise in volatile market 

The inflows via monthly recurring plans or Systematic Investment Plan (SIPs) saw a sharp jump of 45.24 per cent to ₹2.89 trillion in fiscal 2025. This increase, along with MTM gains, saw SIP assets rise 24.59 per cent on-year, to ₹13.35 trillion, accounting for 20.31 per cent share of the overall MF industry's AUM.

 

The new SIP accounts registered during the year rose along with the number of contributing SIP accounts. "The sustained increase in SIP contributions, despite market fluctuations, underscored investors' increasing confidence and commitment to long-term wealth creation."  

     

The AMFI data also showed that younger investors had a more aggressive investment strategy while older investors prioritised risk management through diversification.

 

Investors are shifting towards long-term wealth creation strategies as the ratio of SIP assets held for more than five years rose 

 substantially, AMFI said in the note. "This trend suggests that investors are embracing disciplined, long-term investing."

 

Overall, the mutual fund industry's performance in FY 2025 underscores its strength and long-term potential, Venkat N Chalasani, chief executive of AMFI, said in the annual report. "The outlook remains optimistic, backed by increasing investor participation and favourable macroeconomic indicators."