New Delhi, 9 December: The reach of mutual funds in India is expected to double from 10 percent to over 20 percent in the next 10 years. Along with this, the Assets Under Management (AUM) of mutual funds are projected to exceed ₹300 lakh crore, according to a report released on Tuesday.
The report titled ‘How India Invests 2025’, issued by Bain & Company in partnership with Groww, states that the next phase of growth in the industry will be driven by smaller cities and new young investors.
According to the report, India’s mutual fund industry AUM is estimated to cross ₹300 lakh crore by 2035, with direct equity holdings expected to reach ₹250 lakh crore during this period.
The report highlights the rapid development of the country’s mutual fund ecosystem, with many families increasingly attracted to market-linked investments.
This growth is supported by digital platforms, regulations, and increasing investor confidence, reflecting greater trust in markets for wealth creation.
Most of this new growth is expected to come from large and affluent families residing outside the top 30 cities.
Additionally, many wealthy investors in the next 70 cities beyond the top 30 are also expected to adopt mutual funds more actively.
The growing participation is reflected in the rise of long-term investments. The share of holdings with a tenure of more than five years in the industry’s assets has more than doubled in recent years.
Saurabh Trehan, Partner at Bain Financial Services India, said Indian families are gradually shifting from a savings-based mindset to an investment-based approach.
He added that young and first-time investors, especially those living outside major metropolitan areas, are playing a key role in strengthening the domestic investor base.
There has been a rapid increase in SIP inflows and long-term holdings, which are expected to play an important role in financing India’s economic growth in the coming years.
–
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
