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Kolkata: The mutual fund industry in this country is set to achieve a blistering pace of growth which will power its AUM from the Rs 80 lakh crore level at present to nothing less than Rs 300 lakh crore in 10 years, ICRA Analytics has said. Wishlist Capital director Nilanjan De, a mutual fund strategist for well over two decades has told TV9 that it is entirely possible, given the adrenaline pumped by retail investors in expanding geographies, the entry of new players in the market, launch of new instruments and institutional play in the sector as investors.
The pace of growth has been remarkable even in a market which is wobbly, thanks to global volatility. In May, the AUM of the MF industry was Rs 70 lakh crore but it jumped to beyond the Rs 80 lakh crore in November this year. ICRA Analytics data indicate that MF AUM jumped 18.69% y-o-y in November 2025 -- it was Rs 68 lakh crore in November 2024 and stood at Rs 81 lakh crore in November 2026.
“The domestic mutual fund industry has shown resilience amid geopolitical and global uncertainties, backed by optimism on India’s economic growth and a steadily widening investor base,” Ashwini Kumar, senior vice president and head – market data at ICRA Analytics was quoted in the media as saying. data also indicate that open-ended equity funds have contributed to the AUM growth significantly and it has risen from Rs 9 lakh crore in November 2020 to about Rs 36 lakh crore in November 2025.
Flexi-cap funds have been show stealers, says ICRA Analytics. Their AUM has expanded more than 25% (y-o-y) to rise to Rs 5.45 lakh crore. In the second and third places were multi-cap and large-and-mid-cap funds. Clearly investors were choosing diversified strategies in a climate of changing market conditions. Debt funds also performed well -- total AUM jumping 15% (y-o-y) to reach Rs 19 lakh crore. Among debt funds, money market funds were conspicuous recording more than 40% during the period. The drivers were demand for liquidity and lower interest-rate sensitivity.
"The target is easily achievable. Retailsation is happening at great speed. It is being catalyzed by efficient use of technology. Retail investors are entering the MF domain in hordes. Institutions will also drive the business. Both retail and institutional assets will increase but perhaps the incremental growth will be felt on the retail side," Dey told TV9.
He also emphasised new products adding to the momentum. "Product variations will also grow by a significant measure. New players are coming and they are coming with remarkable speed. About half a dozen AMCs have come in the past year and a half. In the next 5-10 years, I expect smarter, low-cost player entering this space. Legacy assets managed by the top 8-10 players will always be there but the new players with their tech and reach would try to get their nose in the ring," Dey said.
New geographies will be constantly added by the MF space. Already B30 ie, the smaller towns and semi-urban areas are coming in the MF map and that trend can only harden. The ICRA projection is a very sensible one, pointed out the MF expert.
De also highlighted the advance of indexing. "Indexing as a practice will advance a lot in India. A lot of new indices are coming actively prompted by the likes of NSE and BSE and the realms of index can only rise in India," said De. He also pointed to policy tailwinds generated by favourable government policies and focus on investor safety and comfort by market regulator Sebi.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, any form of alternative investment instruments and crypto assets.)
