Summary of this article
Mutual Fund's share in GDP rose from 7 per cent to 21per cent since FY14.
SIP inflows climbed to Rs 29,529 crore in Oct 2025.
Thematic funds, mid caps and small caps drove major inflows since FY22.
Mutual fund ownership in India has witnessed a remarkable expansion over the last decade, amid rising retail participation and growing financial awareness. Assets managed by mutual funds now account for more than one-fifth of India’s Gross Domestic Product (GDP), according to data from the National Stock Exchange (NSE). The industry’s average assets under management (AAUM) have grown at a robust 21 per cent CAGR since FY 2014 to over Rs 75 lakh crore as of September 2025, outpacing the 17 per cent growth in the market capitalization of NSE-listed companies. Mutual fund AUM now stands at over 21 per cent of GDP in H1FY 2026 (using estimated nominal GDP as per the Union Budget of Rs 356 lakh crore), up from just 7 per cent in FY14.
Mutual funds AAUM for the month of October 2025 stood at Rs 79.79 lakh crore, as shown by data from the Association of Mutual Funds in India (Amfi).
Equity mutual fund flows remain robust, driven by steady SIP flows
The rise in mutual fund inflows through Systematic Investment Plans (SIPs) has been pivotal in fostering disciplined investing habits. The rising investors’ interest is reflected in the data. Average monthly SIP inflows have surged from Rs 3,600 crore in FY 2017 to over Rs 27,500 crore (average) in H1FY 2026, crossing the Rs 29,000 crore mark in September 2025. As per recent data released by Amfi, mutual funds collected the record high monthly inflows worth Rs 29,529 crore via SIP in October 2025.
These steady inflows have also strengthened the domestic investor base, helping cushion markets during periods of foreign outflows.
Due to the rising domestic inflows, the Direct mutual fund (DMF) ownership in all-listed NSE companies has risen sharply, narrowing the gap with foreign portfolio investors (FPIs) from nearly about 19 percentage points in FY 2014 to less than 6 percentage points in H1 FY 2026.
Sustained inflows from domestic institutional investors (DIIs) for 18 consecutive quarters reflect the growing confidence of Indian investors in the industry.
Overall, mutual funds have evolved into a key pillar of India’s capital market development via broadening participation, deepening liquidity, and anchoring stability, says the report by NSE.
Equity flows have been consistently positive since FY22, contrasting with the volatility observed in fixed-income categories, weighed down primarily by income tax tweaks. Within equities, according to the NSE data, thematic and sectoral funds have been standout performers, drawing inflows of over Rs 1.4 lakh crore in FY 2025, 35x of the flows in FY 2020 (Rs 4,300 crore), while midcap and small cap segments together accounted for nearly a fourth of the net flows during FY2020-H1 FY 2026, reflecting investors’ willingness to move beyond large-cap exposures. Flexi-cap funds too have accounted for 13.5 per cent of the cumulative inflows, reflecting flexibility across market segments and better appeal among investors.
