Asset Under Management (AUM) in India reflects the booming mutual fund industry, showcasing investor trust and economic growth. AUM represents the total market value of assets managed by funds on behalf of investors. With India’s financial landscape evolving, AUM is a key metric. What’s driving this surge? Let’s explore.
What Is AUM in India?
Asset Under Management in India is the total value of investments handled by mutual funds, covering stocks, bonds, and cash. As of March 2025, the Indian mutual fund industry’s AUM hit ₹65.74 lakh crore, a six-fold rise from ₹10.83 lakh crore in 2015, per AMFI. For example, SBI Mutual Fund alone manages over ₹9 lakh crore. AUM grows with market gains, new investments, and reinvested returns, signaling the industry’s scale.
Explosive Growth and Key Drivers:
The growth of Asset Under Management in India is remarkable. From ₹24.25 lakh crore in June 2019 to ₹61.16 lakh crore in June 2024, AUM surged 2.5 times in five years. Equity funds lead, contributing 53.72% in 2024, fueled by SIPs (10.23 crore accounts), per AMFI. Rising incomes, digital platforms, and campaigns like “Mutual Funds Sahi Hai” drive inflows, especially in Tier-2/3 cities (17% of AUM). However, volatility from FII outflows can dent growth.
Impact on Investors and Funds:
Asset Under Management in India shapes fund performance and fees. Larger AUM in debt funds lowers expense ratios, boosting returns, as costs spread across more investors. Equity funds rely more on manager skill than size. In 2024, 45% of AUM came via direct channels, with institutions dominating, per X posts. High AUM signals trust but doesn’t guarantee returns—small-cap funds with lower AUM often outperform due to flexibility. SEBI’s tiered fee structure also ensures larger funds charge less.
Future Outlook:
AUM in India reflects a dynamic investment ecosystem. AUM in India is poised for growth, with wealth management AUM projected to double to ₹199.13 lakh crore by FY29, per IBEF. Digital tools, rising affluence, and untapped markets (only 8% of Indians invest in mutual funds) fuel this. Learn more at the AMFI website.
Conclusion:
The remarkable growth of AUM in India’s mutual fund industry underscores the country’s evolving investment landscape. Factors such as increased retail participation, the popularity of SIPs, and favorable market conditions have collectively contributed to this expansion. It’s a beacon of opportunity, but investors must weigh performance and fees. Ready to ride the wave? Explore more AUM insights now!
– Ketaki Dandekar (Team Arthology)
Read more about Asset Under Management (AUM) here – https://www.investopedia.com/aum.asp