MF AUM grows by 21% to reach Rs.66.44 lakh crore in FY 2025

The MF industry has recorded a healthy growth of 21.4% in its AUM to reach Rs. 66.44 lakh crore in March 2025 from Rs. 54.72 lakh crore in March 2024.

During the financial year, the industry has received net inflows of Rs. 8.10 lakh crore through various schemes and Rs. 3.24 lakh crore from mark to market gain. 

Of the total net inflows of Rs. 8.10 lakh crore, Rs. 4.16 lakh crore has come from equity schemes while the debt and hybrid schemes have contributed net inflows of Rs. 1.30 lakh crore and Rs. 1.18 lakh crore, respectively. Passive schemes have contributed net inflows of Rs. 1.39 lakh crore in FY 2025.

Chalasani said that the growth of the industry is the reflection of market performance and the increasing participation and trust in the Indian MF industry. He said, “Even in the period of market volatility the investors have remained steadfast which shows the maturity of investors and the success of financial literacy drives conducted by regulator, AMFI and the MF industry. Initiatives like Chhoti SIP, regional investment seminars, Nivesh Yatras, and participation on large platforms like Kumbh Mela has also helped the industry in deepening and widening its presence.”

March 2025

In March, the industry has witnessed a steady contribution from the SIPs although the average AUM saw a slight decline of 1.29%. 

The average AUM in March was Rs. 66.44 lakh crore compared to Rs. 67.31 lakh crore in February. This was due to net outflows of Rs 1.64 lakh crore compared to an inflow of Rs.40,076 crore in February. 

Equity funds

• Equity schemes have witnessed net inflows of Rs. 25,082 crore while the monthly AUM stands at Rs. 28.57 lakh crore
• The inflows were lowest in 11 months due to steep decline in inflows from sectoral funds
• In March, sectoral funds have received net inflows of Rs. 170 crore compared net inflows of Rs. 5,712 crore in February, a sharp 97% decline.
• Flexi cap, small cap and mid cap funds were the top contributors in the equity schemes
• Multi cap. Large cap and large & mid-caps have also recorded healthy inflows last month

Debt funds

• The AUM under debt schemes stood at Rs. 16.97 lakh crore compared to Rs. 17.70 lakh crore in February
• The industry has witnessed net outflows of Rs. 2.03 lakh crore from debt schemes especially from liquid and overnight funds. 
• Liquid funds have witnessed net outflows of Rs. 1.33 lakh crore in March 
• Overnight funds and money market funds have also witnessed net outflows to the tune of Rs. 30,016 crore and Rs. 21,301 crore, respectively 

Hybrid funds

• Hybrid schemes have witnessed net outflows of Rs. 947 crore compared to net inflows of Rs. 6,804 crore last month
• The outflow was due to arbitrage funds which saw net outflows of Rs. 2,855 crore 
• Equity saving funds have also witnessed net outflows of Rs. 561 crore in March
• On the other hand, multi asset allocation funds and dynamic asset allocation funds have registered net inflows of Rs. 1,670 crore and Rs. 776 crore, respectively 
• Solution oriented schemes have seen net inflows of Rs. 241 crore 

Passives

• The passive funds have recorded net inflows of Rs. 14,148 crore in March 
• The AUM of passive funds has reached Rs. 11.14 lakh crore, which is 17% of the total industry AUM

SIP Trends

• The industry has received gross SIP inflows of Rs. 25,926 crore in March
• The total SIP AUM was Rs. 13.35 lakh crore, nearly 20% of the total MF AUM
• The total number of contributing accounts in March was 8.11 crore compared to 8.25 crore accounts in February
• In March, 40 lakh new accounts were opened while 51 accounts were discontinued

Akhil Chaturvedi, Executive Director & Chief Business Officer, Motilal Oswal AMC said, “What would take most market participants by surprise is that the redemptions went up most in large caps (54% higher than last month) besides sectoral and thematic (55% higher than last month). Small Caps saw a dip in redemptions (15% less than last month). Volatility could also not save balanced advantage funds which also saw 30% increase in redemptions compared to last month despite the positioning of BAF funds as the best option during volatility. Yet, redemptions were less compared to all 7 months between Apr 2024 to Oct 2024.”

Gaurav Goyal, National Head - Sales & Marketing, Canara Robeco AMC attributes decline in equity funds inflows to thematic funds. However, out of the 11 categories in equity, nine have shown improvement in net sales against February, which is a reflection of strong retail support, he added.

Suranjana Borthakhur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India) said, "Despite the market volatility, the overall flows into equity funds remain relatively resilient, indicating that investors are not making panic-driven decisions. The overall flows are impacted because of large outflows of debt which is traditionally seen in year-end cycles. What’s encouraging is the continued inflow into small-cap funds assuming investors are keeping a long-term time horizon in mind and not getting swayed away by recent experience only. Sectoral categories have seen slower flows which is a good thing considering there were disproportionate flows into the category in previous months.”

\