The number of unique mutual fund investors in India has increased more than six-fold over the past decade, rising from a little over 1 crore to more than 6 crore, with individual investors now accounting for nearly two-thirds of the industry’s assets under management (AUM), according to Amarjeet Singh, whole time member at the Securities & Exchange Board of India (Sebi).
Speaking at the ASSOCHAM’s 17th mutual fund summit in Delhi today, Singh said the industry’s rapid expansion reflects its growing retail orientation and its increasingly important role in India’s financial markets.
“The mutual fund industry has witnessed significant growth over the past decade…The number of unique mutual fund investors has increased from a little over 1 crore a decade ago to more than 6 crores today — a testament to the industry’s growing retail orientation, with individual investors now accounting for close to two-thirds of total MF AUM,” he said.
The remarks come as the mutual fund industry continues to witness strong growth in both assets and investor participation. Singh noted that industry AUM has increased nearly six-fold over the last decade, from ₹13.82 lakh crore in May 2016 to ₹81.58 lakh crore as of May 31, 2026. Over the last five years alone, the industry has almost tripled in size, while the ratio of mutual fund AUM to GDP crossed 21% in March 2026, an all-time high.
Highlighting the sector’s growing importance in India’s capital markets, Singh said domestic institutional investors, led by mutual funds, have emerged as a key stabilising force during periods of global market volatility.
“Equity mutual funds recorded net inflows for 63 consecutive months through May 2026,” he said, spanning the post-pandemic recovery, global monetary tightening, episodes of foreign portfolio investor (FPI) outflows and heightened geopolitical uncertainty.
Even during heightened global uncertainty in March 2026, domestic institutional investors invested nearly ₹1.43 lakh crore in Indian equities, while equity mutual funds alone attracted inflows of over ₹40,000 crore.
“The Indian mutual fund industry has come of age as a shock absorber for our capital markets,” Singh said.
On systematic investment plans (SIPs), Singh said they have played a central role in sustaining investor participation. SIP inflows have averaged more than ₹31,000 crore per month in the current financial year. As of May 30, 2026, the industry had over 10.4 crore SIP accounts, with assets under management exceeding ₹17.1 lakh crore.
Singh also pointed to a shift in investor behaviour, noting that more than 61% of retail mutual fund AUM has remained invested for over 24 months, reflecting a growing long-term investment approach.
Ownership patterns have also changed significantly. As of the March 2026 quarter, domestic institutional investors held 19.6% of the NSE-listed universe, exceeding FPI ownership of 15.8%, which stood at a 17-year low. Domestic mutual funds’ share reached a record high of 11.4%.
Despite the strong growth, Singh said mutual fund penetration in India remains low. “Less than 5% of India’s population participates in mutual funds as compared to the United States where mutual fund penetration is over 50%,” he said.
He noted that the industry’s future growth will depend on reaching investors across geographies, income groups and demographic segments. To support broader participation, Sebi has introduced calibrated incentive frameworks, including Beyond-30 (B-30) incentives, additional incentives for onboarding women investors and the Chhoti SIP framework.
Singh also highlighted recent regulatory initiatives aimed at strengthening the ecosystem, including the rollout of Specialized Investment Funds (SIFs), life cycle funds under the revised mutual fund categorisation framework, proposals to enable select third-party payments into mutual funds, and simplification of transmission norms.
“The progress of the mutual fund industry cannot be measured through AUM, folio counts, or transaction volumes alone. What matters ultimately is outcomes: better financial returns for investors, more productive allocation of household savings, and stronger governance in investee companies,” he said.
He expressed confidence that through the collective efforts of all stakeholders, including regulators, industry participants, distributors, investor associations and educational institutions, India can build an investment ecosystem that is aligned with the aspirations of a Viksit Bharat.