Mutual Fund Industry in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Mutual Fund Industry in India Has Seen A Shift in Asset Shares Towards Smaller Cities, Driven by Digital Penetration and Smart Cities. This is Reflected in the Increased Retail Contribution Through Systematic Investment Plans. The Investment Fund Industry, Including Unit Trusts and Hedge Funds, Has Seen Strong Performance, Particularly in Equity Funds. There Has Also Been A Significant Increase in the Value of Assets Held in Money Market Funds, Index Funds, Bond Funds, Real Estate Investment Trusts, Commodity Funds, and Sector Funds.

India Mutual Fund Market Size

Indian Mutual Fund Industry Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 0.66 Trillion
Market Size (2029) USD 1.51 Trillion
CAGR (2024 - 2029) > 18.00 %
Market Concentration Medium

Major Players

India Mutual Fund Market Major Players

*Disclaimer: Major Players sorted in no particular order

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India Mutual Fund Market Analysis

The India Mutual Fund Industry in terms of assets under management value is expected to grow from USD 0.66 trillion in 2024 to USD 1.51 trillion by 2029, at a CAGR of greater than 18% during the forecast period (2024-2029).

Mutual Funds are a big part of India's financial services industry. They offer various investment options to retail investors and give institutional investors a low-risk opportunity to create new products or add flexibility to their portfolios. India's mutual fund industry is now the second-largest in the world. It's one of the fastest-growing markets in the world, with over 46 million households investing in Mutual Funds. There are over 40 fund houses in India, but the top 10 fund houses or AMCs manage more than 70% of the total mutual fund assets. The Indian mutual fund industry has seen a 5-fold growth in AUM over the last decade.

In recent years, the mutual fund industry in India has experienced a surge in growth. This is primarily attributed to the increasing population and wealth of the nation. Funds invested in mutual funds can provide income for those unable to work. This has increased the number of individuals willing to invest in mutual funds. Furthermore, the growing digital penetration, the emergence of smart cities, and the improvement in data speeds have also contributed to the shift of asset shares towards more diminutive towns and cities. The increase in retail contribution through Systematic Investment Plans (SIPs) indicates the level of digitalization in India.

The mutual fund AUM increased 77% post-Covid. While a large part of this increase can be attributed to the post-COVID bounce in the markets, it was also largely accounted for by fresh inflows into mutual funds. Furthermore, folios have also grown to provide a retail boost to the volumes. Given the macro mutual fund flow trends, this sub-trend doesn’t come as a surprise. The long-term and long-duration lock-in debt fund AUM increased significantly.

India Mutual Fund Market Trends

Hike in Mutual Fund Assets is Driving the Market

In addition to the asset base, retail investors' share of the industry's assets increased to 57 percent compared to 55 percent last January. Institutional investors make up 43 percent, of which corporates make up 96 percent. The rest are Indian and foreign institutions, as well as banks. Individual investors mostly stick to equity-oriented schemes, while institutions stick to liquid, debt-focused schemes, and ETFs and FFOs. in this route despite the volatility of the markets. Mutual fund SIP contributions have increased more than three-fold over the past seven years. Furthermore, the SIP book increased by 16 percent from the same time last year.

In addition to the asset base, retail investors' share of the industry's assets increased to 57 percent compared to 55 percent last January. Institutional investors make up 43 percent, of which corporates make up 96 percent. The rest are Indian and foreign institutions, as well as banks. Individual investors mostly stick to equity-oriented schemes, while institutions stick to liquid, debt-focused plans, ETFs, and FFOs.

India Mutual Fund Market: Value of Assets in Mutual Funds, in Lakhs, Feb-22 to Feb-23

Rising Share of Small Cities in Mutual Funds Assets Under Management is Driving the Market

The Sensex has gone up by a whopping 100% in the past three years, which has had a significant impact on investor behavior and how investors view stocks. At the same time, the number of demat CDSL and NSDL accounts has gone up by 2.85 times, the number of SIP accounts has doubled, and the average monthly SIP contribution in the mutual fund industry has gone up by 18%. But one of the most significant changes in the economy and India's saving habits has been the rise of small towns in terms of mutual fund assets under management (AUM). India's Association of Mutual Funds has classified these cities as 'Other cities,' a category not included in the country's top 110 cities (regarding industry AUM contribution). In the current year, these cities make up 17% of the total AUM in the industry.

India Mutual Fund Market:  Share of Cities in Industry AUM, India, in Percentages

India Mutual Fund Industry Overview

The Indian mutual funds industry is highly competitive, with major international players. The Indian mutual funds industry presents opportunities for growth during the forecast period, which is expected to drive market competition further. With a few players holding a significant share, the Indian mutual funds industry has an observable level of consolidation. The report profiles companies including HDFC Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, Aditya Birla Sun Life Mutual Fund, and UTI Mutual Fund, among others.

India Mutual Fund Market Leaders

  1. HDFC Mutual Fund

  2. ICICI Prudential Mutual Fund

  3. SBI Mutual Fund

  4. UTI Mutual Fund

  5. DSP BlackRock Mutual Fund

*Disclaimer: Major Players sorted in no particular order

India Mutual Fund Market Concentration
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India Mutual Fund Market News

  • April 2023: ICICI Prudential Mutual Fund announced the launch of ICICI Prudential Innovation Fund. This open-ended thematic equity scheme will predominantly invest in equity, equity-related securities of companies, and units of global mutual funds/ETFs that can benefit from innovation strategies and themes.
  • April 2023: HDFC Mutual Fund launched three index schemes – HDFC S&P BSE 500 Index Fund, HDFC NIFTY Midcap 150 Index Fund, and HDFC NIFTY Smallcap 250 Index Fund. These are open-ended schemes replicating/tracking the S&P BSE 500, NIFTY Midcap 150 Index, and NIFTY Smallcap 250 Index, respectively.

India Mutual Fund Industry Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

      1. 4.1.1 Brief on the Indian Economy and Asset Management Industry

      2. 4.1.2 India Mutual Fund Industry Size - AUMs Over the Years

      3. 4.1.3 Brief on Geographical Categorization (T30, B30, etc.) of the Indian Mutual Fund Landscape

    2. 4.2 Market Drivers

      1. 4.2.1 Economic Growth and Investor Awareness

    3. 4.3 Market Restraints

      1. 4.3.1 Regulatory Changes can create restraints to Mutual Fund market

    4. 4.4 Market Opportunities

      1. 4.4.1 Innovative Products and Expanding Distribution Network

    5. 4.5 Insights into Types of Schemes or Funds Offered in the Indian Mutual Fund Industry

    6. 4.6 Prominence of SIPs as a Tool of Investment in Mutual Funds in India

    7. 4.7 Brief on the Regulatory Environment

      1. 4.7.1 Regulatory Bodies Governing The Industry

      2. 4.7.2 Industry Policies Affecting Mutual Fund Schemes

      3. 4.7.3 Notable Reforms Related to Macroeconomic Factors and Incidents like the IL&FS Collapse

    8. 4.8 Technological Innovations Shaping the Industry

      1. 4.8.1 Trends of Gross Inflows - Physical Mode vs Digital Mode

      2. 4.8.2 Technologies (like AI, ML, RPA) Changing the Ecosystem

      3. 4.8.3 Fintechs Inflencing the Indian Mutual Fund Industry

    9. 4.9 Value Chain/Supply Chain Analysis

    10. 4.10 Porter's Five Forces Analysis

      1. 4.10.1 Bargaining Power of Suppliers

      2. 4.10.2 Bargaining Power of Buyers/Consumers

      3. 4.10.3 Threat of New Entrants

      4. 4.10.4 Threat of Substitute Products

      5. 4.10.5 Intensity of Competitive Rivalry

    11. 4.11 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Asset Class/Scheme Type

      1. 5.1.1 Debt-oriented Schemes

      2. 5.1.2 Equity-oriented Schemes

      3. 5.1.3 Money Market

      4. 5.1.4 ETFs and FoFs

    2. 5.2 By Source of Funds

      1. 5.2.1 Banks

      2. 5.2.2 Insurance Companies

      3. 5.2.3 Retail Investors

      4. 5.2.4 Indian Institutional Investors

      5. 5.2.5 FIIs and FPIs

      6. 5.2.6 Other Sources

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 SBI Mutual Fund

      2. 6.2.2 HDFC Mutual Fund

      3. 6.2.3 ICICI Prudential Mutual Fund

      4. 6.2.4 Reliance Mutual Fund

      5. 6.2.5 Aditya Birla Sun Life Mutual Fund

      6. 6.2.6 DSP BlackRock Mutual Fund

      7. 6.2.7 Kotak Mutual Fund

      8. 6.2.8 IDFC Mutual Fund

      9. 6.2.9 Tata Mutual Fund

      10. 6.2.10 Invesco Mutual Fund

      11. 6.2.11 Sundaram Mutual Fund*

    3. *List Not Exhaustive
  7. 7. FUTURE MARKET TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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India Mutual Fund Industry Segmentation

Mutual funds are pooled investments from many investors to invest in various asset classes. A mutual fund can be a corporation's pension or an employee-owned company's savings plan, or an individual or family can manage it. The report explains the Indian mutual fund industry, regulatory environment, MF companies, and business models. The report also provides a detailed market segmentation with the product types, current market trends, changes in market dynamics, and growth opportunities. Furthermore, an in-depth analysis of the market size and forecasts for the various segments are presented. The Indian Mutual Fund Industry is segmented based on asset class, and source of funds. By asset class, the market is segmented into debt-oriented schemes, equity-oriented schemes, money market, ETFs, and foods. By source of funds,the market is segmented into banks, retail investors, Indian institutional investors, FIIs, insurance companies, and other sources. The market size and forecasts are provided in terms of value (USD) for all the above segments.

By Asset Class/Scheme Type
Debt-oriented Schemes
Equity-oriented Schemes
Money Market
ETFs and FoFs
By Source of Funds
Banks
Insurance Companies
Retail Investors
Indian Institutional Investors
FIIs and FPIs
Other Sources
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India Mutual Fund Industry Market Research Faqs

The India Mutual Fund Industry size is expected to reach USD 0.66 trillion in 2024 and grow at a CAGR of greater than 18% to reach USD 1.51 trillion by 2029.

In 2024, the India Mutual Fund Industry size is expected to reach USD 0.66 trillion.

HDFC Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, UTI Mutual Fund and DSP BlackRock Mutual Fund are the major companies operating in the India Mutual Fund Industry.

In 2023, the India Mutual Fund Industry size was estimated at USD 0.54 trillion. The report covers the India Mutual Fund Industry historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Mutual Fund Industry size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The key trends shaping the future of the Mutual Fund Industry in India are a) Increased digitalization and adoption of fintech solutions b) Focus on sustainable and responsible investing c) Introduction of innovative fund products, and expanding investor education and awareness initiatives

India Mutual Fund Industry Industry Report

The India mutual funds market is marked by promising growth, fueled by diverse investment sources such as banks, insurance companies, and retail investors. The market is segmented by asset types like debt-oriented schemes, equity-oriented schemes, money markets, ETFs, and FOFs, with debt-oriented schemes capturing a significant market share. Geographically, the market extends across North, South, East, and West India, experiencing notable expansion in both urban and developing regions, which contributes to the overall growth of the mutual fund industry in India. This expansion is supported by technological advancements that enhance service efficiency and customer engagement. Additionally, the mutual fund market is increasingly reaching smaller cities and towns, driven by growing digital penetration and smart city initiatives, reflecting a wider acceptance and participation through systematic investment plans. The competitive market landscape offers a variety of products designed to meet diverse investor needs, creating a dynamic environment for investors and fund providers. For detailed statistics on the mutual fund market in India, including market share, size, and revenue growth rate, refer to industry reports by Mordor Intelligence™, which provide a market forecast outlook and historical overview. Access a sample of this detailed industry analysis through a free report PDF download to know the future of the mutual funds market in India.

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Mutual Fund Industry in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)