According to ICRA Analytics, India's mutual fund industry is growing rapidly, with Average Assets Under Management (AAUM) increasing by 21.94% YoY and 3.61% MoM as of June 2025.
With equity-oriented schemes continuing to dominate and making up 54.76% of total AAUM, investors' desire for long-term wealth creation is evident. Debt- and liquid-oriented schemes followed with 14.88% and 12.50%, respectively.
Key Highlights
- Equity‑oriented schemes now represent 54.76 % of India’s mutual fund AAUM, holding the dominant share.
- Nagaland recorded the fastest mutual fund growth in June 2025—62.47 % monthly, 100.57 % annually.
Maharashtra's robust financial infrastructure allowed it to maintain its top spot, holding 40.61% of all mutual fund assets. But because of their remarkable growth, attention has turned to smaller states and union territories. Nagaland's AAUM increased by 100.57% year on year, while Dadra and Nagar Haveli saw a 56.52% rise. Ladakh and Lakshadweep also saw double-digit MoM increases in June 2025.
These developing areas demonstrated encouraging trends in the adoption of equity funds, despite beginning from a low base. In Ladakh, equity schemes accounted for 90.85% of mutual fund assets, while in Lakshadweep, they accounted for 84.07%.
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Growing smartphone adoption, fintech-led digital onboarding, and improved financial literacy are driving this move away from conventional savings options like gold and fixed deposits and toward market-linked investments.
At 13.50%, Daman and Diu had the slowest YoY growth. With five states (Maharashtra, Delhi, Gujarat, Karnataka, and West Bengal) accounting for more than 65% of all AAUM, the industry has ample opportunity to grow in tier II and tier III cities. This opens the door for increased financial inclusion in the upcoming years and demonstrates the potential of India's unexplored retail investor base.
