India Mutual Fund Industry Market Size (2024 - 2029)

India Mutual Fund Market Analysis

The India Mutual Fund Industry in terms of assets under management value is expected to grow from USD 0.66 trillion in 2024 to USD 1.51 trillion by 2029, at a CAGR of greater than 18% during the forecast period (2024-2029).

Mutual Funds are a big part of India's financial services industry. They offer various investment options to retail investors and give institutional investors a low-risk opportunity to create new products or add flexibility to their portfolios. India's mutual fund industry is now the second-largest in the world. It's one of the fastest-growing markets in the world, with over 46 million households investing in Mutual Funds. There are over 40 fund houses in India, but the top 10 fund houses or AMCs manage more than 70% of the total mutual fund assets. The Indian mutual fund industry has seen a 5-fold growth in AUM over the last decade.

In recent years, the mutual fund industry in India has experienced a surge in growth. This is primarily attributed to the increasing population and wealth of the nation. Funds invested in mutual funds can provide income for those unable to work. This has increased the number of individuals willing to invest in mutual funds. Furthermore, the growing digital penetration, the emergence of smart cities, and the improvement in data speeds have also contributed to the shift of asset shares towards more diminutive towns and cities. The increase in retail contribution through Systematic Investment Plans (SIPs) indicates the level of digitalization in India.

The mutual fund AUM increased 77% post-Covid. While a large part of this increase can be attributed to the post-COVID bounce in the markets, it was also largely accounted for by fresh inflows into mutual funds. Furthermore, folios have also grown to provide a retail boost to the volumes. Given the macro mutual fund flow trends, this sub-trend doesn’t come as a surprise. The long-term and long-duration lock-in debt fund AUM increased significantly.

India Mutual Fund Industry Segmentation

Mutual funds are pooled investments from many investors to invest in various asset classes. A mutual fund can be a corporation's pension or an employee-owned company's savings plan, or an individual or family can manage it. The report explains the Indian mutual fund industry, regulatory environment, MF companies, and business models. The report also provides a detailed market segmentation with the product types, current market trends, changes in market dynamics, and growth opportunities. Furthermore, an in-depth analysis of the market size and forecasts for the various segments are presented. The Indian Mutual Fund Industry is segmented based on asset class, and source of funds. By asset class, the market is segmented into debt-oriented schemes, equity-oriented schemes, money market, ETFs, and foods. By source of funds,the market is segmented into banks, retail investors, Indian institutional investors, FIIs, insurance companies, and other sources. The market size and forecasts are provided in terms of value (USD) for all the above segments.