Indian MFs register fastest growth globally in last 5 years

MFs in the US recorded an AUM growth of 9 per cent, Europe logged 5 per cent while Asia Pacific and Africa registered a growth of 3 per cent and 8 per cent, respectively

The Indian mutual funds industry registered the fastest asset under management (AUM) growth globally in the last five years on the back of steady inflows and bullish equity markets.

The net AUM of domestic MFs industry was up 17 per cent between December 2020 and December 2025, while globally MFs recorded a growth of 7 per cent, according to the Factbook 2026 ‘Resilient run’ released by AMFI and Crisil.

MFs in the US recorded an AUM growth of 9 per cent, Europe logged 5 per cent while Asia Pacific and Africa registered a growth of 3 per cent and 8 per cent, respectively.

Global share

However, India’s share of global MF asset increased from 0.64 per cent to 1.01 per cent, signalling a durable rise in its relevance within the global asset-management landscape, the report said .

Sundeep Sikka, Chairman, Association of Mutual Funds in India, said across major global financial markets, asset management companies are operating in an environment shaped by higher interest rates, evolving geopolitical dynamics, and changing investor preferences.

Many mature markets are witnessing slower growth and an increasing shift towards lower-cost investment products. In contrast, India continues to stand out as a bright spot in the global asset management landscape, he added.

The rising formalisation of household finance, wider SIP-led retail participation, growing awareness, digital access and regulatory credibility have collectively expanded the industry’s asset-gathering capacity beyond cyclical market support, the report said.

The number of unique mutual fund investors increased from 2.3 crore in March 2021 to 6.1 crore in March 2026, a growth of nearly 2.7 times. This growth indicates that the industry’s expansion is increasingly being supported by wider household participation, rather than only by market appreciation or higher investments from existing investors.

Venkat Nageswar Chalasani, Chief Executive, Association of Mutual Funds in India said even as major economies faced high inflation, rising interest rates, and geopolitical tensions, India stood out as a beacon of stability and growth.

“A key driver of this strength was the Indian Mutual Fund Industry. Instead of slowing down, India’s domestic capital markets showed remarkable maturity, absorbing global shocks and keeping momentum strong, he added.

Individual growth

While corporates remained the largest segment, their share moderated from 41 per cent in March 2021 to 37 per cent in March 2026, reflecting faster expansion in individual participation alongside continued institutional presence.

The retail segment’s share increased sharply until March 2024, supported by sustained SIP adoption, improving digital access, and deeper penetration of mutual funds across households.

The share of banks and financial institutions also increased, driven by greater use of mutual funds for liquidity management and deployment into debt-oriented products, highlighting the industry’s widening relevance across both retail and institutional pools of capital.

Published on August 24, 2026