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Mutual fund industry AUM grew sevenfold in 10 years: Study

Mutual fund industry AUM grew sevenfold in 10 years: Study

The Hindu2 days ago
The asset under management (AUM) of India's mutual fund (MF) industry as of June 2025 was estimated at ₹74.40 lakh crore, marking a more than seven-fold growth in 10 years, Motilal Oswal Mutual Fund said in a report.
The report said equity commanded the largest share at 59.94%, followed by debt at 26.53%, hybrid at 8.28%, and other categories accounting for 5.26%.
A steady rise was witnessed in passive investing, which now accounts for about 17% of the total AUM, it added.
'While active funds continue to dominate in absolute terms, the increasing share of passive strategies reflects broader adoption of low-cost, transparent, and benchmark-aligned approaches. In the quarter ended June 2025, total estimated net inflows stood at ₹3,98,000 crore,' Motilal Oswal Mutual Fund said.
'This was largely led by the debt segment, which drew ₹2,39,000 crore, reversing the previous quarter's outflows. Equities contributed ₹1,33,000 crore, while commodities added ₹9,000 crore.
Active strategies accounted for ₹3,62,000 crore of total inflows, with passive funds contributing ₹36,000 crore,' it added.
Pratik Oswal, Head - Passive Business, Motilal Oswal Asset Management Company Ltd., said,'This quarter reflects a notable shift in portfolio allocation —a growing tilt toward well-diversified, resilient portfolios, complemented by a measured return to debt.'
'What's particularly encouraging is the increasing traction seen in passive investing. Indian investors are gradually recognising the structural benefits of passive funds—simplicity, cost efficiency, and alignment with market benchmarks.' he added.
As per the report within equities, broad-based funds emerged as the dominant category, garnering ₹86,000 crore in net inflows. This category captured 64% of total equity flows—55% from active funds and a notable 106% from passives—indicating increased allocation to passive equity strategies.
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