MUMBAI: The assets under management of managed funds, or broadly what are called capital market instruments, are set to grow more than 2.1x to go past Rs 455 trillion by 2030 from Rs 212.1 trillion last fiscal, according to a report. Financialisation and investor participation are increasing following the structural shifts in investment decisions wherein savings are increasingly moving from traditional avenues such as fixed deposits to professionally managed, market-linked portfolios.
At Rs 455 trillion, managed funds would be 73% of GDP compared with 64% last fiscal and 45% in fiscal 2020, Crisil Ratings said in a report Monday.
When it comes to managed funds AMUs and fixed deposits, the former have overtaken the latter at Rs 212.1 trillion as of March 2025 as against the fixed/term deposits of Rs 199 trillion. These numbers were a low Rs 92 trillion and Rs 120 trillion respectively in March 2020.
Managed funds include mutual funds, life insurance, retirement funds, portfolio management services, alternative investment funds, real estate investment trusts (Reits) and infrastructure investment trusts (Invits).
The growth of managed products is likely to be driven by sustained rise of mutual funds and continued scaling of alternative funds.
By fiscal 2030, mutual funds are likely to gain the highest market share among managed funds, driven by rising equity participation through systematic investment plan-led flows and deeper penetration. AIFs will gain share as investors, especially domestic institutional investors, seek diversification and enhanced yield within their portfolio, the report noted.