The mutual fund industry’s AUM reaches all time high Rs.72 lakh crore

AMFI data reveals that the total AUM of the Indian mutual fund industry has crossed Rs.72 lakh crore in May 2025.

By the end of May 2025, the total AUM stood at Rs.72.18 lakh crore against Rs.69.50 lakh crore, a 4% increase over the month.

Venkat N Chalasani, Chief Executive, AMFI said that Indian mutual fund industry has crossed Rs. 70 lakh crore in AUM reaching new highs, driven by resilient retail participation and consistent SIP inflows. The growth of SIP is particularly encouraging, indicating a shift towards disciplined, long-term investment.

Overall, the industry has received net inflows of Rs.29,573 crore. Here are the key trends that the industry witnessed in the month of May 2025.

Debt schemes

• Debt schemes have witnessed outflows of Rs.15,908 crore
• This is majorly because of liquid and overnight funds that have registered outflows of Rs.40,205 crore and Rs.8,120 crore, respectively
• Corporate bond fund and money market fund are the top two debt fund categories with the highest net inflows of Rs.11,983 crore and Rs.11,223 crore, respectively
• Apart from these fund categories, low duration fund, ultra-low duration fund and gilt funds have also received net inflows of Rs.3,134 crore, Rs.1,848 crore and Rs.1,386 crore, respectively

Equity schemes

• Equity schemes witnessed a decline in net inflows. The inflows in equity funds stood at Rs.19,013 crore in May compared to Rs.24,269 crore in April
• Among the equity schemes, flexi cap, small cap and multi cap funds received the highest net inflows of Rs.3,841 crore, Rs.3,214 crore and Rs.2,999 crore, respectively
• No so far behind were mid cap and large & mid cap funds, which received net inflows of Rs.2,809 crore and Rs.2,691 crore, respectively
• ELSS, value fund/contra fund and dividend yield funds recorded net outflows last month

Hybrid schemes

• In May, hybrid funds have witnessed net inflows of Rs.20,765 crore compared to Rs.14,247 crore previous month
• All hybrid fund categories have recorded net inflows in May
• Arbitrage funds have received the highest net inflows of Rs.15,702 crore
• Multi Asset Allocation and BAF have received net inflows of Rs.2937 crore and Rs.1136 crore, respectively

Other schemes

• The other schemes which include index funds, ETFs and FoFs have recorded net inflows of Rs.5,526 crore in May 2025
• Other ETFs, index funds and gold ETFs have seen net inflows of Rs.4,087 crore, Rs.1,104 crore and Rs.292 crore, respectively

SIP trends

• In May 2025, the industry received gross monthly SIP inflows of Rs.26,688 crore as against Rs.26,632 crore in April 2025
• The industry has registered 59 lakh new SIPs while 43 lakh SIPs matured or were discontinued
• By the end of May 2025, the total number of contributing SIPs stand at 9.06 crore compared to 8.38 crore previous month

Anoop Vijaykumar, Head of equity, Capitalmind MF, said, “May’s AMFI numbers tell a story of consolidation rather than concern. Even with a 22 percent month-on-month dip, Rs.19,000-plus crore of fresh equity money is the 51st straight month of positive flows—a remarkable show of investor discipline since March 2021. Large-cap allocations have cooled sharply as Investors are recalibrating their risk-reward expectations. The relatively modest decline in small and mid-cap inflows suggests that the appetite for growth stories remains intact, though tempered by valuation consciousness.”

Harshad Patwardhan, Chief Investment Officer, Union MF said, “Among the debt funds, corporate bond funds were the only category to see big jump in net inflows as investors positioned themselves ahead of the policy announcement. Equity oriented schemes experienced a 22% drop in net inflows. Hybrid schemes, however, experienced a 46% increase in net inflows over the previous month. This trend perhaps reflects investors responding to the volatility in the market over the past few months."

Jatinder Pal Singh, CEO, ITI MF, said, “The slowdown in net equity inflows can be attributed to several factors, including a rise in equity market performance in May 2025, and a potential phase of consolidation or profit booking by investors. Additionally, rising global volatility—triggered by geopolitical tensions following India's launch of Operation Sindoor against Pakistan and ongoing concerns over global inflation—fuelled a risk-off sentiment among certain investors."

Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), said, “While equity inflows moderated in May, investor confidence remains strong with SIP contributions holding steady. The dip in large-cap and flexi-cap inflows reflects near-term caution but attractive valuations in large-caps could lead to renewed interest. Mid- and small-cap flows have also eased slightly, though long-term investor appetite for these segments remains intact.”

Venkat N Chalasani, Chief Executive, AMFI said, “Equity inflows moderated to Rs.19,013 crore this month, reflecting cautious investor sentiment amidst market volatility. Such phases often witness a natural reallocation towards hybrid and arbitrage schemes, offering a more balanced approach during uncertain times. The trend highlights the maturing investment behaviour among Indian investors. Notably, May also marked the industry’s 51st consecutive month of positive equity inflows.”