Mutual Funds Witness Significant Growth: AUC Reaches Rs 71 Lakh Crore
The Indian mutual fund industry has witnessed a significant surge in assets under custody (AUC), reaching a staggering Rs 70.9 lakh crore in October. This marks a substantial increase from Rs 58.5 lakh crore in January this year, according to data from the National Securities Depository Limited (NSDL).
Post-Pandemic Retail Momentum
The mutual fund industry has experienced a notable spike in AUC after the pandemic. Over the past eight years, AUC has risen from Rs 19.3 lakh crore in 2017 to Rs 44.05 lakh crore in 2023. The industry’s AUC saw a significant jump in December 2024, reaching Rs 59.35 lakh crore.
Retail investors have played a crucial role in driving this growth, with systematic investment plans (SIPs) contributing significantly to the increase in AUC. In September, SIP contribution reached Rs 29,361 crore, up from Rs 28,265 crore in August 2025. This represents a nearly 20% increase compared to the previous year, when SIP contribution stood at Rs 24,509 crore.
Actively Managed Equity Mutual Funds
Actively managed equity mutual funds recorded an inflow of Rs 30,421.69 crore in September, a 9% decrease compared to the inflow of Rs 33,430.37 crore in August. Despite this decline, the overall trend suggests a positive outlook for the mutual fund industry.
Net inflow of the mutual fund industry was an outflow of Rs 43,146.32 crore in September, compared to an inflow of Rs 52,442.78 lakh crore in the previous month. Debt funds led the outflow, with investors increasingly opting for more conservative investment options.
New Fund Offers (NFOs)
The total inflows into active equity accounted for by NFOs stood at Rs 274 crore in September. Index funds saw the most number of NFOs, with four launches during the month. In comparison, the inflows in August stood at Rs 2,056 crore.
For investors looking to explore mutual funds as a investment option, it’s essential to understand the types of mutual funds available and how to invest in mutual funds. Additionally, staying updated on the latest mutual fund news and trends can help investors make informed decisions.
Conclusion
In conclusion, the Indian mutual fund industry has witnessed significant growth, driven by retail momentum and systematic investment plans. As the industry continues to evolve, it’s essential for investors to stay informed about the latest trends and insights. By doing so, they can make informed investment decisions and navigate the complex world of mutual funds with confidence.