India’s mutual fund industry has grown more than sixfold over the past decade, with assets under management (AUM) rising from ₹12 lakh crore in 2015 to ₹80.23 lakh crore as of December 2025, according to Motilal Oswal Mutual Fund’s latest Where the Money Flows report for the quarter ended December 2025.
The report attributes this expansion to sustained systematic investment plan (SIP) participation, wider digital distribution, regulatory developments and a structural shift in household savings towards financial assets.
₹1.92 lakh crore inflows in December quarter
During the December 2025 quarter, the industry recorded estimated net inflows of ₹1.92 lakh crore. Active funds accounted for ₹1.17 lakh crore, while passive strategies saw ₹75,000 crore in inflows.
Equity funds remained the primary driver, attracting ₹1.12 lakh crore. Within equities, broad-based funds captured 88% of active flows, amounting to ₹98,000 crore. Large-cap passive funds, flexicap active funds and arbitrage strategies accounted for a significant share of allocations.
Debt sees marginal outflows; commodities surge
Debt funds recorded marginal net outflows of ₹1,000 crore amid rate uncertainty. However, constant maturity funds saw ₹3,100 crore in inflows, while liquid funds attracted ₹27,000 crore.
Corporate bond funds received inflows, whereas target maturity funds and gilt funds saw outflows of ₹3,200 crore and ₹2,000 crore respectively.
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Commodity funds witnessed net inflows of ₹33,000 crore, marking a 56% quarter-on-quarter rise. In hybrids, multi-asset funds drew ₹20,000 crore, accounting for 70% of segment inflows.
Passive funds now account for about 18% of industry AUM and 23% of equity flows, though active strategies continue to dominate overall allocations, the report noted.
Equity mutual funds recorded net inflows of ₹24,013 crore in January, 14% down from ₹28,035 crore in December, latest AMFI data show. Despite the moderation in overall equity inflows, monthly SIP contributions remained flat at ₹31,002 crore. SIP inflows stood at ₹31,000 crore in December.