Growing Right: The mind-set shift behind India’s Mutual Fund boom

Moneycontrol Mutual Fund Summit 2025

India’s mutual fund industry has tripled in size over the last five years! From Rs 25.49 trillion in June 2020 to Rs 74.41 trillion in June 2025, the journey so far has been extraordinary. But as the industry targets to reach $1 trillion AUM milestone, the focus now shifts from scale to sustainability, and from momentum to maturity.

At the HDFC Mutual Fund presents Moneycontrol Mutual Fund Summit 2025, powered by Axis Mutual Fund, industry leaders came together to chart the next phase of this growth story, and it’s not just about inflows anymore. It’s about intent, insight, and investor-first thinking.

“Returns are cyclical. Markets will always fluctuate, that’s the only constant,” said Kalpen Parekh, MD & CEO, DSP Mutual Fund. He emphasised the need to move away from highlighting best-case scenarios and instead educate investors using rolling returns, probability ranges, and downside data. In his view, shifting from excitement to expectation management is the way forward.

However, Navneet Munot, MD & CEO, HDFC AMC, pointed to the success of campaigns like “Mutual Funds Sahi Hai”, which brought millions of Indians into the fold. But the next chapter, demands deeper insight. “It’s no longer just about kya sahi hai, we must now answer kaise sahi hai,” he remarked, highlighting the need for a more evolved investor education framework.

Bringing in the grassroots perspective, DP Singh, Deputy Managing Director & Joint CEO, SBI Mutual Fund, spoke about the need to deepen financial awareness beyond urban centres. “Thousands of dos-and-don’ts posters are now up in SBI branches across the country. But true transformation will come when Bharat becomes Viksit Bharat,” he noted, stressing that rural and semi-urban India will define the next phase of growth.

While Nilesh Shah, MD, Kotak AMC, called for innovation within a stronger regulatory framework. “The return of capital is more important than the return on capital,” he said, adding that without consistent enforcement of the rule of law, the industry’s ability to innovate across asset classes will remain limited.

An equally relatable insight came from Radhika Gupta, MD & CEO, Edelweiss MF. “For most Indian investors, equity and debt are still dal-chawal,” she said. “Let’s not serve gourmet meals before they’re ready.” Her message emphasised the importance of simplicity, clarity, and respect for the investor’s journey.

The panel collectively echoed a clear message: the road to $1 trillion AUM will not be paved by trend-chasing or product overload, but by responsible innovation, investor education, and a deep understanding of the Indian saver’s mind-set. This conversation was one among many at the summit that also explored fiduciary responsibility, evolving regulatory frameworks, Gen Z investing habits, and the long-term role of passive funds in India’s financial ecosystem.

To watch the full panel and explore more insights from the summit, click here.