Indian mutual fund industry
The twenty-first century is about to complete its 25 years. If we look at the biggest success stories of the Indian economy in the last two and a half decades, the name of the mutual fund industry will be written in golden letters. This journey from the year 2000 to 2025 is not just a game of numbers, but it is a proof of the changing thinking and maturity of the Indian investor. There was a time when the stock market and mutual funds were considered full of risk, but today it has become an important part of the financial planning of every middle class family.
Latest figures show that the Indian mutual fund industry has set a new record in terms of Assets Under Management (AUM). By November 2025, this figure has reached a record level of ₹ 80.80 trillion (approximately ₹ 80.80 lakh crore). This increase is also shocking because just five years ago, i.e. in 2020, this figure was around ₹ 30 lakh crore.
Investors’ capital increased at rocket speed
mutual fund The pace of growth can be gauged from the fact that the size of the industry has increased manifold in the last 25 years. In the year 2000, the total assets (AUM) of the mutual fund industry was Rs 1,03,452 crore. At that time, the market was unilaterally dominated by Unit Trust of India (UTI), which had a stake of 66% (about Rs 68,524 crore) in the total assets.
At the same time, between 2020 and 2025, i.e. in just 5 years, the industry jumped almost three times. The rise in the market since the Corona period and the confidence shown by investors is the result that today the industry has crossed the huge figure of ₹ 80 lakh crore. This shows that the Indian market is now deeper and stronger than ever.
SIP becomes a trusted partner of crores of Indians
The biggest hand behind this historic growth is of the common Indian investor and ‘Systematic Investment Plan’ (SIP). Now investment is not limited to big cities only. New investors coming from small cities and towns have given new heights to the market. Evidence of this is visible in the number of accounts or ‘folios’ of investors.
The number of mutual fund folios was 10 crore in May 2021, which has increased to 25.86 crore (258.6 million) by November 2025. Equity and hybrid schemes have the highest share in this. This makes it clear that people are now ready to move away from traditional savings instruments and invest money in equities for the long term. SIP has turned investment into a habit, due to which a fixed amount is coming into the market every month and the market is getting stability.
Why is confidence in the market increasing so much?
There are many concrete reasons behind this tremendous growth. The most important reason is ‘Financial Inclusion’. Now the process of investment has become digital and very easy, due to which investors from villages and small towns are also able to connect easily. The second big reason is the strong performance of equity markets. When investors get good returns, their confidence increases. The Indian investor has now become wise. Instead of getting nervous about market fluctuations, he is focusing on long-term goals.
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