The domestic mutual fund industry’s Average Assets Under Management (AAUM) grew 16.16% year-on-year (YoY) in August 2025, even as assets dipped marginally by 0.38% on a month-on-month (MoM) basis, according to data from ICRA Analytics.
Maharashtra maintained its dominant position, contributing 40.59% of the total AAUM. It was followed by New Delhi, Gujarat, Karnataka, and West Bengal, though each accounted for less than 10%. Together, the top five states contributed 68% of the industry’s total AAUM.
Smaller states and union territories showed sharp momentum in asset growth. Dadra and Nagar Haveli emerged as the fastest-growing region, recording an 8.35% MoM rise and an impressive 49.36% YoY jump in AAUM. Mizoram followed with a 33.04% increase, while Nagaland and Haryana posted gains of 27.52% and 5.24%, respectively. At the other end, Goa reported the lowest growth at 11.86% YoY, while Lakshadweep was the only region to register a decline, with its AAUM falling 41.92% YoY.
Equity-oriented schemes continued to dominate investor preference, contributing 54.57% of the industry’s AAUM. Debt-oriented funds accounted for 14.76% and liquid schemes for 13.04%. Among niche categories, exchange-traded funds (ETFs) contributed 11.03%, followed by balanced schemes at 5.30%, gold ETFs at 0.91%, and overseas fund-of-funds at 0.40%.
State-wise, Ladakh stood out with the highest reliance on equities, where 90.82% of AAUM came from equity-oriented schemes. Lakshadweep followed closely with 83.32%. This indicates that in many smaller geographies, investors’ portfolios are overwhelmingly tilted towards equities compared with larger states that maintain more diversified allocations.
Overall, the data underscores two clear trends: the concentration of mutual fund assets in a handful of large states, and the rapid pace of growth in smaller regions such as Dadra and Nagar Haveli and Mizoram. Despite short-term monthly fluctuations, the strong annual growth signals continued investor appetite for mutual funds across the country.