India’s MF Boom: AUM 3x, Investors Double In 5 Years Driven By Chhoti SIP, SIF | Savings and Investments News


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India Mutual Fund industry grew from 2020 to 2025, with AUM rising from Rs 22.3 lakh crore to Rs 65.7 lakh crore, and unique investors doubling to 5.4 crore, SEBI’s report states.

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During this period, the number of unique investors more than doubled,  rising from  2.2  crore to over  5.4  crore. 

During this period, the number of unique investors more than doubled,  rising from  2.2  crore to over  5.4  crore. 

The India Mutual Fund industry has seen a phenomenal growth and expansion in investor base in the past five years, driven by democratization of investment access, according to SEBI’s annual report 2024-25. The Industry’s assets under management (AUM) surged from Rs 22.3 lakh crore in March 2020 to an impressive Rs 65.7 lakh crore by March 2025, the report said.

During this period, the number of unique investors more than doubled,  rising from  2.2  crore to over  5.4  crore.  Meanwhile, average net monthly  contributions through systematic investment plans (SIPs) witnessed a nearly two-fold increase, growing from `7,259crore in 2019-20 to `13,052 crore in 2024-25, it added.

Mutual  Fund  Lite framework,  creation of a new asset class ‘Specialized Investment Funds (SIF)’ to bridge the gap between mutual funds and portfolio management services and launch of ‘Chhoti SIP’,  a low-ticket systematic investment plan starting at `250, are pivotal in driving this transformation, the report mentioned.

Over the past five years, portfolio management assets have witnessed a consistent upward trajectory, culminating at `37.8 lakh crore by the close of 2024-25. This expansion has been fuelled by a surge in high-net-worth individuals (HNIs)  and a rising preference for bespoke wealth management solutions beyond traditional mutual funds.

The Boom In IPO

SEBI’s report underlined that Indian corporates raised a record quantum of capital through equity issuances, registering the highest ever annual resource mobilization despite fluctuations in secondary markets.

A total of 320 companies tapped the IPO space in 2024-25, up from 272 in 2023-24, the report said, adding that momentum in the small and medium enterprises (SME) segment also accelerated considerably.

This remarkable expansion was driven by a confluence of supportive macroeconomic fundamentals, increasing retail investor interest  and  strong  listing  performance. Qualified institutional placement  (QIP) has emerged as a strategic and flexible capital-raising  instrument in the recent times.

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Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More

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