Amid increasing participation from Gen Z, women, and households in smaller cities, India’s mutual fund industry, particularly systematic investment plans (SIPs), is expected to experience significant growth next year. In 2025, the industry witnessed substantial expansion, with assets under management reaching Rs 81 trillion in November, up from Rs 68 trillion in November 2024, marking an 18.69% year-on-year growth and nearly tripling over the past five years with a CAGR of 21.91%.
Investors infused over Rs 3 lakh crore into mutual fund schemes through SIPs until November, a first in a calendar year. Data from the Association of Mutual Funds in India (AMFI) revealed that SIP inflows in 2025 touched Rs 3.04 trillion, up from Rs 2.69 trillion in 2024. November saw SIP inflows remaining steady at Rs 29,445 crore, as per AMFI data.
Net equity inflows surged to Rs 29,894 crore in November from Rs 24,671 crore in October, while the industry’s total assets under management grew to Rs 80.80 lakh crore compared to Rs 79.87 lakh crore in the previous month. SIPs have emerged as a robust growth engine for the Indian mutual fund industry, driven by sustained net inflows, strong market performance, and increased retail participation facilitated by digitization and financial savings.
ICRA Analytics suggested that India’s mutual fund industry’s assets under management could exceed Rs 300 trillion by 2035. Market experts believe that India is well-positioned to surpass the Rs 100 trillion mark in the coming years, given the current inflow trends and market performance. Looking ahead, the industry’s long-term outlook indicates transformative growth beyond Rs 100 trillion.
By November 2025, SIP assets under management had reached Rs. 16.53 trillion, constituting over 20% of the industry’s total AUM, showcasing their crucial role in enhancing long-term asset accumulation. SIPs represented 37% of gross inflows into active equity schemes in the first 10 months of 2025, up from 27% in 2024, with active equity schemes attracting about 80% of total SIP flows.
Experts noted that the investments reflect a positive risk appetite, supported by strong retail SIP participation, domestic liquidity, and optimism regarding India’s medium-term economic and corporate earnings outlook. With uncertainties persisting around monetary easing, flows are expected to focus on shorter-duration and high-quality strategies, with investors awaiting clearer policy signals before extending duration exposure.
