Indian Mutual Funds Register Fastest Global AUM Growth Over Five Years: AMFI-Crisil Report

The Indian mutual funds industry registered the fastest asset under management (AUM) growth globally in the last five years, supported by steady inflows and bullish equity markets, according to the Factbook 2026 'Resilient run' released by AMFI and Crisil.

The net AUM of the domestic mutual funds industry grew by 17 per cent between December 2020 and December 2025. In comparison, global mutual funds recorded a growth of 7 per cent over the same period. Across other major regions, mutual funds in the US recorded an AUM growth of 9 per cent, Europe logged 5 per cent, while the Asia Pacific and Africa regions registered growth rates of 3 per cent and 8 per cent, respectively.

Reflecting this expansion, India's share of global mutual fund assets increased from 0.64 per cent to 1.01 per cent, signaling a durable rise in its relevance within the global asset-management landscape.

Sundeep Sikka, Chairman of the Association of Mutual Funds in India, noted that while major global financial markets operate in an environment shaped by higher interest rates, evolving geopolitical dynamics, and changing investor preferences, India continues to stand out as a bright spot. He pointed out that many mature markets are witnessing slower growth and an increasing shift towards lower-cost investment products.

The report highlights that the rising formalisation of household finance, wider SIP-led retail participation, growing awareness, digital access, and regulatory credibility have collectively expanded the industry's asset-gathering capacity beyond cyclical market support.

Data from the report shows that the number of unique mutual fund investors increased from 2.3 crore in March 2021 to 6.1 crore in March 2026, marking a growth of nearly 2.7 times. This indicates that expansion is increasingly supported by wider household participation rather than solely by market appreciation or higher investments from existing investors.

Venkat Nageswar Chalasani, Chief Executive of the Association of Mutual Funds in India, stated that even as major economies faced high inflation, rising interest rates, and geopolitical tensions, India stood out as a beacon of stability and growth. He added that domestic capital markets showed remarkable maturity by absorbing global shocks and maintaining strong momentum.

Regarding investor segments, corporates remained the largest segment, though their share moderated from 41 per cent in March 2021 to 37 per cent in March 2026. This reflects a faster expansion in individual participation alongside a continued institutional presence. The retail segment's share increased sharply until March 2024, aided by sustained systematic investment plan (SIP) adoption, improving digital access, and deeper penetration across households.

Additionally, the share of banks and financial institutions grew, driven by greater use of mutual funds for liquidity management and deployment into debt-oriented products, highlighting the widening relevance of the industry across both retail and institutional pools of capital.

"The remarkable growth of India's mutual fund industry over the past five years highlights a fundamental structural shift in how household savings are deployed. With unique investors growing significantly and retail participation expanding through systematic investments, domestic capital markets are displaying strong resilience against global economic uncertainties. This deepening financial formalisation creates a stable foundation for long-term economic growth and broader capital market participation across the country." — Dr. Shishir Gupta, Founder & CEO, StartupLanes