Mutual fund: According to a survey released on Tuesday, the assets under management (AUM) of the mutual fund sector in India might reach Rs 300 trillion by 2035 due to factors including digital adoption, increased involvement from Gen Z, women, and families in smaller cities, as well as the trend towards long-term investment via SIPs.

With AUM rising to Rs 81 trillion in November 2025 from Rs 68 trillion in November 2024, the Indian mutual fund business had a tremendous boom in 2025. This represented a year-over-year growth of 18.69 percent and almost doubling over the previous five years, recording a CAGR of 21.91 percent.

According to ICRA Analytics’ study, the consistent increase in AUM has been attributed to sustained net inflows, robust market performance, and growing retail involvement, which has been facilitated by the financialization and digitization of savings.

Despite global uncertainty, the industry’s AUM topped Rs 70 trillion by May 2025 and then surpassed Rs 80 trillion in the following six months.

Given this trajectory, market players believe that, assuming present inflow patterns and market performance continue, India is well-positioned to surpass the Rs. 100 trillion benchmark in the coming years.

“The long-term outlook indicates even more transformative growth beyond Rs. 100 trillion.” According to Ashwini Kumar, Senior Vice President and Head Market Data at ICRA Analytics, “the domestic mutual fund industry has demonstrated resilience backed by a sense of optimism regarding the growth prospects of the Indian economy despite the geopolitical situation and global uncertainties.”

Between November 2020 and November 2025, the AUM of open-ended equities funds increased fourfold, from Rs. 9 trillion to Rs. 36 trillion.

The same increased 17.45% year over year from Rs. 30 trillion in November 2024.

Due to a mix of favorable market circumstances, diversified exposure, and strategic flexibility, flexible-cap funds often exhibit robust year-over-year gains. Multi-cap funds and big and mid-size fund categories, which had YoY increases of 24.78% and 22.78%, respectively, closely trail the flexi cap fund category, according to Kumar.

From Rs. 17 trillion in November 2024 to Rs. 19 trillion in November 2025, the corpus of debt funds also increased 14.82 percent year over year.

The small cap funds had the greatest increase in the equity fund performance area during 5- and 10-year tenures, with corresponding CAGRs of 24.91% and 16.70% (as of November 30).

One of the most potent and dependable development drivers for the mutual fund sector in India is Systematic Investment Plans (SIPs).

“More and more people are turning to financial planning in order to accumulate savings, especially through the SIP route, as a result of the growing middle class and increased financial literacy,” Kumar said.