The total Assets Under Management (AUM) of the Indian Mutual Fund (MF) industry have surged to ₹74.40 lakh crore, reflecting more than a sevenfold increase over the past decade, according to a report released on Monday.
Of the total AUM, equity funds command the largest share at 59.94 per cent, followed by debt at 26.53 per cent, hybrid funds at 8.28 per cent, and other categories making up the remaining 5.26 per cent, as per data from Motilal Oswal Mutual Fund.
A key development in recent years has been the steady rise of passive investing, which now accounts for approximately 17 per cent of the total AUM. While active funds continue to dominate in absolute terms, the growing share of passive strategies reflects a broader shift toward low-cost, transparent, and benchmark-aligned approaches.
In the quarter ending June 2025, total estimated net inflows stood at ₹3.98 lakh crore. This was primarily driven by the debt segment, which attracted ₹2.39 lakh crore — reversing the outflows recorded in the previous quarter. Equities contributed ₹1.33 lakh crore, while commodities added ₹9,000 crore.
Active strategies accounted for ₹3.62 lakh crore of total inflows, with passive funds contributing ₹36,000 crore, the report highlighted.
“This quarter reflects a notable shift in portfolio allocation — a growing tilt toward well-diversified, resilient portfolios, complemented by a measured return to debt,” said Pratik Oswal, Head – Passive Business, Motilal Oswal Asset Management Company Ltd. (MOAMC).
He added that it is particularly encouraging to see the increasing traction of passive investing in India. “Investors are gradually recognising the structural benefits of passive funds — simplicity, cost-efficiency, and alignment with market benchmarks.”
Within equities, broad-based funds emerged as the dominant category, garnering ₹86,000 crore in net inflows. This segment captured 64 per cent of total equity flows — with 55 per cent from active funds and a notable 106 per cent from passive strategies — indicating increased allocation to passive equity products.
Among active broad-based funds, Flexi Cap led the segment with ₹15,800 crore in net inflows, followed by Small Cap at ₹12,000 crore and Mid Cap at ₹10,800 crore.
In the passive space, Large Cap funds remained the most preferred segment, reflecting continued investor focus on blue-chip benchmark indices.
However, thematic mutual funds saw a net outflow of ₹2,400 crore, in contrast to the ₹8,400 crore in net inflows reported in the previous quarter.
-IANS