India’s mutual fund property are closely concentrated within the prime 5 cities, with Mumbai, New Delhi, Bengaluru, Pune, and Kolkata collectively accounting for a staggering 52.52 per cent of the nation’s whole mutual fund property beneath administration (AUM) as of March 2025. This implies as a lot as Rs 34.52 lakh crore of whole AUM corpus of Rs 65.74 lakh crore got here from these 5 cities.
Mumbai leads the pack with a 27 per cent share (Rs 17.75 lakh crore), adopted by New Delhi with 12.63 per cent, Bengaluru with 5.39 per cent, Pune with 4 per cent and Kolkata with 3.49 per cent. This pattern is in step with the earlier yr’s information, in response to the Affiliation of Mutual Funds in India (AMFI). The dominance of those cities highlights the skewed distribution of mutual fund investments in India. “Since a lot of the corporates are headquartered in these 5 cities, their investments (in mutual fund schemes) additionally get accounted there. That is the rationale that the numbers are at all times skewed,” stated A Balasubramanian, managing director & CEO, Aditya Birla Solar Life Mutual Fund.
The MF trade had a complete of 5,34,20,840 distinctive traders as of March 2025; of this, 25.91 per cent (or 1,38,40,740) have been girls. This represents a marked enhance from 24.2 per cent in March 2024, underscoring the rising monetary independence and consciousness amongst girls. “The rise in literacy charges and the rising presence of girls within the workforce have been instrumental in enhancing their financial contributions and, consequently, girls are actually rising as a key participant within the MF investor base,” AMFI stated in its annual report.
Particular person traders, together with high-net-worth people, retail traders and non-resident Indians (NRIs), maintain 63.2 per cent of the full trade AUM (Rs 65.74 lakh crore) — in step with the earlier yr’s pattern (63.4 per cent). As of March 2025, particular person traders maintain 65 per cent of AUM in fairness funds, 18 per cent in hybrid funds, 9 per cent in debt funds and seven per cent in passive funds, it stated.
In keeping with AMFI, a notable commentary is that in most states, particular person traders accounted for greater than 63 per cent of the MF AUM, with the exceptions being New Delhi (52.77 per cent) and Maharashtra (48.22 per cent). The truth is, in a number of states — Lakshadweep, Tripura, Daman and Diu, Andaman and Nicobar Islands, Arunachal Pradesh, Bihar and Puducherry — particular person traders dominate with over 95 per cent of AUM. The funding panorama has developed over time, with shifting funding preferences amongst people throughout totally different age brackets. A key pattern noticed within the internet flows is the elevated threat urge for food of traders, who’re searching for increased returns. “Information exhibits a shift in the direction of extra aggressive funding methods, significantly amongst youthful traders, whereas older traders prioritise threat administration by diversification,” AMFI stated.
AMFI evaluation reveals that youthful traders are extra inclined to tackle increased dangers, as will be gauged from their considerably increased share of internet flows within the fairness phase whereas the older traders exhibit a extra cautious strategy, with comparatively decrease proportion of internet flows in fairness and better allocation in the direction of debt. Notably, within the increased age brackets, the traders are more and more choosing hybrid schemes, which supplies a balanced mix of development and stability. As many as 70 NFOs within the fairness class have been launched in fiscal 2025, collectively mobilising Rs 85,244 crore, marking a major enhance from the 58 schemes launched in fiscal 2024, which garnered Rs 39,297 crore. Sectoral/ thematic funds emerged as the biggest class inside fairness adopted by Flexi-cap and Mid-cap. Collectively, the three classes accounted for 43 per cent share of the full fairness AUM as at end-March 2025, AMFI stated.
Fairness mutual funds noticed a document influx of Rs 4.17 lakh crore, the best ever in a monetary yr. The online inflows through the yr exceeded twice the online inflows within the earlier yr. “This, mixed with valuation positive aspects, propelled the AUM of equity-oriented schemes by 25.4 per cent to Rs 29.45 lakh crore at end-March 2025. Throughout the identical interval, Nifty TRI rose by 6.7 per cent,” it stated.
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The MF trade ended fiscal 2025 with AUM at a document Rs 65.74 lakh crore in March 2025 as in opposition to Rs 53.40 lakh crore in March 2024, marking an on-year rise of 23.11 per cent. The growth in AUM was primarily pushed by sturdy internet inflows through the fiscal yr. Moreover, mark-to-market (MTM) positive aspects supplied a supplementary increase, underpinned by optimistic efficiency in each fairness and debt markets. In keeping with SBI Funds Administration Ltd’s deputy managing director & joint chief govt officer, DP Singh, one other vital issue for increased contribution to the full MF AUM from the highest 5 cities is that a lot of the nation’s wealth can be concentrated in these areas.