Mutual Fund Investment: Strong net inflows and mark-to-market gains amid thriving equity and debt markets drove a 23% year-over-year increase in mutual fund assets, or more than Rs 12 lakh crore, to a record of Rs 65.74 lakh crore in FY25. In contrast, in March 2024, the industry's assets under management totalled Rs 53.40 lakh crore.

"The asset base expanded partly owing to mark-to-market (MTM) gains, spurred by equity markets clocking positive returns, as reflected in the Nifty 50 TRI and Sensex TRI rising 6 per cent and 5.9 per cent, respectively. Debt markets also contributed positively through MTM gains, supported by favourable yield movements," according to the Association of Mutual Funds in India's (Amfi) annual report released on Monday.

Additionally, net inflows totaling Rs 8.15 lakh crore during fiscal 2025 were cited as the reason for the rise in AUM.

With the number of folios reaching an all-time high of 23.45 crore and an investor base of roughly 5.67 crore, the sharp increase in the asset base was also mirrored in the growing numbers of mutual fund investors.

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The fiscal year saw a noteworthy trend: the folios of equity-oriented schemes increased by 33.4% year over year to 16.38 crore. At 70%, the scheme still made up the majority of the folios.

Additionally, hybrid scheme folios grew by 16 percent to 1.56 crore, while index funds and exchange-traded funds (ETFs) saw a 48.3 percent increase to 4.15 crore folios. Debt-oriented scheme folios, on the other hand, decreased 3% to 69.5 lakh.

Investors were drawn to systematic investment plans (SIPs) as yearly contributions increased by 45.24 percent to Rs 2.89 lakh crore in FY25, reflecting a sharp increase in flows into this segment. Together with MTM gains, this significant increase caused SIP assets to increase 24.6% to Rs 13.35 lakh crore, or 20.31 percent of the total AUM of the MF industry.

There were 5.34 crore distinct investors in the sector as of March 2025. Women made up 1.38 crore, or 26%, of this total.

"This represents an increase from 24.2 per cent in March 2024, underscoring the growing financial independence and awareness among women. The rise in literacy rates and the growing presence of women in the workforce have been instrumental in enhancing their economic contributions and, as a result, women are now emerging as a key participant in the MF investor base," the report said.

The largest ever inflow into equity-oriented mutual funds during a fiscal year was Rs 4.17 lakh crore. The net inflows for the year were more than twice as high as those for the year before. The AUM of equity-oriented schemes increased by 25.4% to Rs 29.45 lakh crore at the end of March 2025 as a result of this and valuation gains.

The successful introduction of new fund offers (NFOs) during the year contributed to the increase in inflow across subcategories within equity-oriented schemes. Compared to the 58 schemes introduced in fiscal 2024, which raised Rs 39,297 crore, a total of 70 NFOs in the equity category were introduced in fiscal 2025, raising a total of Rs 85,244 crore.

In fiscal 2024, debt mutual funds saw net outflows of Rs 0.23 lakh crore, while in the previous fiscal year, they recorded net inflows of Rs 1.38 lakh crore. From Rs 12.62 lakh crore in March 2024 to Rs 15.21 lakh crore in March 2025, the category's AUM increased by 20.5%.

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(With Inuts From PTI)