BS EDIT: India’s Mutual Fund Boom: A Quiet Financial Revolution

By Business StandardPublished On May 22, 2025

Folio Growth Signals Trust

MF folios hit 235 million by March 2025—up 32% in a year

Retail and HNIs now hold over 99% of them

SIPs Gain Ground

SIP accounts rose to 81.1 million, from 63.8 million a year ago

FY25 inflows: ₹2.9 trillion, up from ₹2 trillion

Holding for the Long Haul

33% of regular-plan SIPs and 19% of direct-plan SIPs are now over 5 years old

Investors are committing long term

Passive Funds Surge

Index fund inflows jumped 278% to ₹59,306 crore

Diversified, disciplined investing is rising

SIPs Beat Volatility

SIPs average out costs in bear markets

Long-term, diversified portfolios lower risks and boost returns

Big Potential Ahead

Only 53 million MF investors vs 250 million online shoppers

AUM-to-GDP is just 20%—room to grow and drive India’s economic story