Synopsis:
Equity mutual fund AUC crossed Rs. 50 lakh crore in October 2025, driven by rising SIP inflows, investor confidence, favourable policies, and increased financial literacy, reflecting robust growth and wider participation in India’s mutual fund industry.
The Indian mutual fund (MF) industry achieved a significant milestone in October 2025, as the equity assets under custody (AUC) crossed the Rs. 50 lakh crore mark for the first time. This landmark reflects the growing confidence of investors in equity-oriented mutual funds and highlights the robust inflows into the market over the past year.
Mutual Fund Equity AUM Crosses Rs. 50 Lakh Crore for the First Time
There is a steady month-on-month increase in mutual fund equity AUC from January to October 2025. Starting at approximately Rs. 41 lakh crore in January, the AUC dipped slightly in February to around Rs. 38 lakh crore, reflecting short-term market volatility or profit-booking. However, from March onwards, the growth trajectory picked up steadily, with inflows increasing consistently month after month.
May 2025 marked the first significant surge in AUC, crossing Rs. 45 lakh crore, followed by further gains in June and July, where the AUC hovered around Rs. 47 lakh crore. Despite minor fluctuations in July and August, investor confidence remained strong, driving the market toward the historic Rs. 50 lakh crore milestone by October 2025.
AUM is the total money managed across all schemes. Equity AUM refers only to the equity portion of that total. AUC also reflects just the equity held, showing the value of mutual funds’ stock-market holdings.
Reasons for this Landmark Crossing
Retail investors have significantly increased their commitment to equity mutual funds via SIPs, with monthly SIP contributions rising from about Rs 8,500 crore in March 2020 to nearly Rs 29,361 crore by September 2025. This boom in SIP inflows demonstrates growing trust and deeper penetration of mutual funds across India’s population.
Interest rate cuts, a 100-basis-point reduction in the cash reserve ratio (CRR), and GST rate reductions have created a conducive environment for investment, boosting equity market optimism despite overall subdued returns in the past year.
There is a move of household savings away from traditional asset classes like fixed deposits and gold towards equities through mutual funds, reflecting enhanced financial literacy and long-term wealth creation outlooks among investors.
Efforts by Asset Management Companies (AMCs), regulators, and distributors, including campaigns like ‘Mutual Fund Sahi Hai’, have enhanced mutual fund awareness and outreach, especially beyond metropolitan areas, contributing to a larger investor base.
The Indian mutual fund industry’s AUC or Equity AUM crossed Rs. 50 lakh crore in October 2025 marks a historic milestone, underscoring growing investor confidence in equity-oriented mutual funds. Sustained inflows through systematic investment plans (SIPs), favorable macroeconomic policies, and a shift of household savings toward equities have all contributed to this landmark. Coupled with increased financial literacy and awareness initiatives, this achievement reflects both the maturity and expanding reach of the Indian mutual fund ecosystem, highlighting its pivotal role in long-term wealth creation for investors across the country.
Written By Manideep Appana
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