India Mutual Fund AUM Hits ₹73.73 Lakh Cr: 18.6% CAGR Growth

India’s mutual fund industry demonstrated significant expansion over five years leading to March 2026. Assets Under Management (AUM) grew at a compound annual growth rate (CAGR) of 18.6%, reaching a total of ₹73.73 lakh crore.

Understanding the Growth Drivers

This substantial growth indicates an increasing financialization of household savings across the nation. The AUM-to-GDP ratio climbed to a record 21.3% in FY26, reflecting this fundamental shift in investment patterns.

• AUM-to-GDP ratio in FY26: 21.3%
• AUM in B30 (beyond top 30) cities grew: 2.5 times
• IMF projected GDP growth for FY26 & FY27: 6.5%

The expansion was notably broad-based, extending beyond major financial hubs. Significant participation from cities outside the top 30 contributed to this widespread growth.

Shifting Investment Patterns and Participation

Investors are increasingly committing to longer-term strategies within the mutual fund landscape. This is evident in the rising proportion of assets held for extended periods.

• Assets held for over five years (March 2026): 19.2% of total AUM
• Assets held for over five years (March 2021): 7.7% of total AUM
• Women’s participation (AUM) during the period: tripled
• Passive fund AUM during the period: quadrupled

Systematic Investment Plans (SIPs) emerged as a crucial catalyst for this growth. SIPs have fostered disciplined, long-term investing behavior among a wider demographic.

The Impact of Systematic Investment Plans

SIP-linked AUM experienced a dramatic increase, becoming a more significant component of the overall mutual fund assets. This highlights the preference for structured investment approaches.

• SIP-linked AUM in March 2021: ₹4.25 lakh crore
• SIP-linked AUM in March 2026: ₹14.83 lakh crore
• SIP share of total AUM (March 2026): 20.1%
• SIP share of total AUM (March 2021): 13.5%
• SIP AUM held for five years (March 2026): 31%
• SIP AUM held for five years (March 2021): 12.3%

Venkat Nageswar Chalasani, Amfi’s chief executive, noted India’s economic stability amid global shifts. He highlighted the rapid increase in unique investors, from 5.36 crore in March 2025 to 6.14 crore in March 2026, indicating a fundamental shift in household savings.

This shift extends beyond metro cities into Tier-2, Tier-3, and rural markets, largely driven by SIPs and investor awareness initiatives. Furthermore, investors are diversifying portfolios into multi-asset allocation strategies, including gold and silver mutual funds and ETFs, for hedging and diversification.

The sustained growth in AUM, SIP participation, and investor numbers, coupled with a robust economic environment, indicates an ongoing structural shift in Indian household savings. This trend suggests a continued move towards market-linked financial assets in the coming years.