India’s MF AUM could surge past Rs 300 lakh crore as SIP ticket sizes jump across investor segments: Report

India’s MF AUM could surge Past Rs 300 Lakh Crore as SIP ticket sizes jump across investor segments: Bain-Groww Report

India’s mutual fund industry could see the unprecedented scale-up, according to the "How India Invests 2025" report by Bain & Company and Groww forecasting that total mutual fund assets under management will cross Rs 315 lakh crore by FY35,  rising nearly sevenfold from the current Rs 41 lakh crore held by individual investors. The report attributes this possible meteoric rise to a doubling of household penetration from 10% today to around 20% over the next decade paired with stronger long-term investing behaviour and a surge in systematic investment plan (SIP) commitments.

The report highlights that SIP inflows have grown at roughly 25% CAGR over the past ten years, with monthly SIP contributions touching record highs. Although average SIP ticket size once hovered near Rs 3,200, it has now begun to rise meaningfully. Since March 2023, the average SIP per investor has grown 1.6-times, supported by a substantial shift from smaller SIPs to larger monthly contributions.

The shift in ticket sizes is visible across investor demographics, according to the report. Salaried millennials in metros now contribute the largest SIP amounts, with average monthly SIPs around Rs 10,000,  while even Gen Z students (traditionally associated with the smallest SIPs) have expanded their SIP size significantly, more than doubling from their earlier levels, as their average net inflow per capita grew by nearly 70% from FY23 to FY25.

The report adds that mutual fund holdings with time horizons greater than five years have more than doubled, rising from 7% to 16% of overall AUM in the last five years, signaling deeper investor trust.

Digital platforms remain the engine of this acceleration. The report shows that nearly 35% of mutual fund investors and 80% of equity investors have entered through digital channels. Groww alone added over 3.5 crore SIPs in the past five years, while investors under 35 now account for roughly 30% of all SIP users on the platform.