India’s mutual fund industry has reached a new landmark as equity assets under custody (AUC) surpassed ₹50 lakh crore for the first time in October 2025. The figure stood at approximately ₹50.83 lakh crore, reflecting a sharp surge from the February low of around ₹39.21 lakh crore—marking a nearly 30 % increase over eight months.
Key Highlights
- Equity mutual fund assets in India cross ₹50 lakh crore for the first time in October.
- Rising SIP inflows and strong retail participation drive record mutual fund industry growth despite market volatility.
Industry experts attribute this milestone to a combination of robust retail participation and sustained optimism in India’s equities market. Monthly Systematic Investment Plan (SIP) contributions have risen significantly, climbing from about ₹8,500 crore in March 2020 to roughly ₹29,361 crore by September 2025 — illustrating the growing retail investor base and their increasing commitment to equity investments.
Even though market returns over the past year have been subdued, investor confidence remains high, bolstered by supportive macroeconomic policy measures including interest-rate cuts, a 100-basis-point reduction in the cash reserve ratio (CRR), and significant GST rate reductions. Analysts say this suggests a structural shift in household savings — away from traditional assets toward equities via mutual funds.
Also Read: Equity MF Inflows Fall to Rs 30,422 Cr in Sept: AMFI Data
However, experts caution that the momentum could face headwinds if market performance stalls or declines over the next one-two years. Meanwhile, growing interest in passive funds — index and hybrid offerings — is further broadening the investor base and aiding diversification.
