Mutual fund AUM rises 18.6% CAGR to ₹73.73 lakh crore in five years: Amfi

India’s mutual fund industry recorded strong and broad-based growth over the five years to March 2026, with assets under management (AUM) rising at a compound annual growth rate (CAGR) of 18.6% to ₹73.73 lakh crore, according to data released by the Association of Mutual Funds in India (Amfi). 

AUM-to-GDP ratio rose to 21.3% in FY26 

The mutual fund industry’s AUM-to-GDP ratio rose to 21.3% in FY26, the highest level on record, underscoring the growing role of mutual funds in household savings and the country’s financialisation. The expansion was also increasingly broad-based geographically. AUM in B30 (beyond the top 30) cities grew 2.5 times between March 2021 and March 2026, pointing to rising participation from investors outside the country’s major financial centres. 

The industry also saw a significant shift towards longer-term investing. Assets held for more than five years accounted for 19.2% of total AUM in March 2026, up sharply from 7.7% in March 2021. 

Women’s participation in mutual funds 

Women’s participation in mutual funds increased substantially during the period, with AUM held by women investors growing threefold between March 2021 and March 2026. Passive fund AUM also expanded fourfold over the same period. 

SIPs emerged as a major driver of the industry’s growth 

Systematic investment plans (SIPs) emerged as a major driver of the industry’s growth. SIP-linked AUM increased more than threefold to ₹14.83 lakh crore in March 2026 from ₹4.25 lakh crore in March 2021. Its share of total mutual fund industry AUM rose to 20.1% from 13.5% during the period. 

The growing preference for disciplined, long-term investing was further reflected in the tenure of SIP investments. In March 2026, 31% of SIP AUM had been held for five years, compared with just 12.3% in March 2021. 

Venkat Nageswar Chalasani, chief executive of Amfi, said the past year had brought significant global shifts but also opened up new growth opportunities for India’s financial markets. 

“Even as major economies faced high inflation, rising interest rates and geopolitical tensions, India stood out as a beacon of stability and growth,” Chalasani said. He said the Indian mutual fund industry had demonstrated resilience and maturity by absorbing global shocks while maintaining its growth momentum. 

According to Chalasani, one of the most significant trends has been the rapid increase in the number of unique investors participating in capital markets through mutual funds. The number rose from 5.36 crore in March 2025 to 6.14 crore in March 2026, an addition of nearly 78 lakh investors in a year. “This reflects a fundamental shift in household savings behaviour,” he said, adding that financialisation of savings was no longer limited to metro cities or high-net-worth individuals and had increasingly spread to Tier-2, Tier-3 and rural markets. 

SIPs and investor-awareness initiatives have helped millions of households shift from traditional physical assets towards financial instruments, particularly goal-oriented and professionally managed investment products, Chalasani said. 

The industry’s growth has also been accompanied by greater diversification in investor portfolios. Global macroeconomic realignments, currency fluctuations and geopolitical tensions have increased demand for safe-haven assets, prompting Indian investors to explore multi-asset allocation strategies. 

Gold and silver mutual funds and exchange-traded funds (ETFs) have emerged as important hedging and diversification instruments, reflecting a shift beyond equity-led investing towards more nuanced risk management and asset allocation, Chalasani said. 

The broader economic environment has also supported the growth of domestic capital markets. India has remained one of the fastest-growing major economies, supported by resilient domestic demand, relatively low inflation and continued public investment. 

The International Monetary Fund’s April 2026 World Economic Outlook projected India’s GDP growth at 6.5% in both FY26 and FY27, keeping the country among the fastest-growing major economies. Sustained domestic consumption, public infrastructure investment, and an expected revival in private investment are likely to remain key drivers of medium-term growth.

Against this backdrop, the mutual fund industry’s expansion in AUM, SIP participation, investor numbers and long-term holdings points to a continuing structural shift in Indian household savings towards market-linked financial assets.