When will India's mutual fund AUM surpass Rs 300 lakh crore?

India's mutual fund AUM is projected to surpass Rs 300 lakh crore by the year 2035.

What is driving the growth in India's mutual fund sector?

Growth is driven by increased household adoption, digital enablement, supportive regulations, and growing investor trust, particularly from mass and mass-affluent households.

How is retail investing reshaping India's capital markets?

Retail investing is enhancing capital access for MSMEs, democratizing wealth creation, creating jobs, and strengthening market resilience against foreign portfolio outflows.

Home / Business and Economy / India's Investment Boom: Mutual Funds to Hit ₹300 Lakh Crore

India's Investment Boom: Mutual Funds to Hit ₹300 Lakh Crore

9 Dec

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Summary

Mutual fund AUM projected to exceed Rs 300 lakh crore by 2035.
Household mutual fund penetration to double from 10% to 20% in a decade.
Growth driven by mass, mass-affluent households beyond top 30 cities.

India's Investment Boom: Mutual Funds to Hit ₹300 Lakh Crore

India's financial landscape is undergoing a profound transformation, with mutual fund Assets Under Management (AUM) projected to reach Rs 300 lakh crore by 2035. Direct equity holdings are also expected to soar, indicating a significant rise in market-linked investments. This growth is propelled by increasing household adoption, enhanced digital accessibility, supportive regulations, and a deepening trust in investment vehicles.

The next phase of growth is anticipated to originate from households in tier-2 and tier-3 cities, moving beyond the traditional top 30 urban centers. Mutual fund penetration is set to double to 20% within the next decade. This expansion is further bolstered by a notable increase in long-term investment horizons, with holdings exceeding five years doubling their share in the total AUM.