Mutual fund assets cross Rs 70 lakh crore as smaller cities drive expansion

MF assets cross Rs 70 lakh crore

India’s mutual fund industry reached a major milestone in October, with assets under custody (AUC) climbing to Rs 70.9 lakh crore, marking a 22 percent rise over the past year. The growth reflects not only buoyant market performance but also strong retail participation from beyond traditional metro hubs.

The pace of expansion has accelerated sharply in the post-pandemic period. It took eight years for AUC to rise from Rs 19.3 lakh crore in 2017 to Rs 39.3 lakh crore in 2023. But over just the past two years, the industry’s asset base is close to doubling at Rs 71 lakh crore.

Retail participation doubles in two years

Investor participation has kept pace with the rise in assets. The number of mutual fund accounts reached 25.2 crore in September 2025, up from 15.7 crore in 2023. By comparison, between 2018 and 2023, folios had taken six years to double—from 8 crore, highlighting the speed of retail inclusion in recent years.

Among rising centres, Hyderabad, Surat, Lucknow, Jaipur, Nagpur, Vadodara, and Bhopal have shown steady gains. Surat’s share increased to 0.77 percent (from 0.55 percent in 2016), Lucknow rose to 0.68 percent (from 0.50 percent) and Jaipur climbed to 0.85 percent (from 0.72 percent). Bhopal (0.35 percent from 0.21 percent), Vadodara (0.86 percent from 0.71 percent) and Nagpur  (0.56 percent from 0.43 percent) also witnessed a rise in share.

A few smaller centres, however, have stagnated or declined. Cochin’s share fell to 0.24 percent (from 0.37 percent) and Udaipur’s to 0.16 percent (from 0.40 percent), reflecting uneven growth at the lower end of the distribution even as the broader “other cities” bucket expanded by more than 15 percentage points since 2016.

SIP inflows and equity funds sustain momentum

Retail activity is also visible in systematic investment plans (SIPs).

Monthly SIP inflows hit a record Rs 29,361 crore in September 2025, up nearly 20 percent from Rs 24,509 crore a year earlier. These consistent inflows have helped funds expand steadily despite market volatility.

Equity-linked assets led the uptrend, rising from Rs 42.4 lakh crore in October 2024 to Rs 50.9 lakh crore in October 2025—a 20 percent year-on-year increase. Across all categories, total mutual fund assets grew by Rs 12.9 lakh crore during the same period.

Broader and deeper participation

The numbers underscore a structural deepening of India’s mutual fund ecosystem. As smaller cities account for a growing share of assets and new folios, the investor base is becoming broader, younger, and more geographically diverse—a transformation that has made mutual funds a true pan-India savings instrument.