Every 4th rupee in mutual funds belong to retail investors, HNIs own 1/3rd AUM: Franklin Templeton India MF

Individual investors account for over 61% of total mutual fund assets under management (AUM), with retail accounting for 27.01% and HNIs 33.67% of that. Individual investors’ AUM grew 8x in 10 years vs 6x AUM growth of the industry, according to a press note by Franklin Templeton India Mutual Fund on the development in the Indian mutual funds industry.

As per the press note, the SIP average ticket size moved higher in June 2025 to Rs 2,966. Talking about segments, the passive fund folios have grown by 17x in the last five years. And lastly, the sectoral/ thematic funds category witnessed highest gross/net sales over the last 12 months.

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Individual investors

Out of the total AUM, individual investors now account for almost 61% of AUM, with retail investors at 27.01% and HNIs at 33.67% of that. Corporates account for 37.14% of AUM, the rest are Banks at 2.13% and FIIs/FPIs at 0.05%.

The investor category wise allocation in AUM, equity funds accounts for around 55% of total AUM.

Individual investors’ AUM

The industry witnessed high growth in terms of individual investors’ share in total AUM. The individual Investors’ AUM grew nearly 8x in 10 years vs nearly 6x AUM growth of the industry. The industry AUM grew by 24% CAGR in the last five years and 20% CAGR in the last 10 years respectively, ending in June 2025.

The five years CAGR for individual investors was at 23% PA vs industry AUM at 24% PA over five years. In terms of 10 years CAGR of the individual investors stood at 23% PA vs Industry AUM at 20% PA over 10 years.

Individual vs institutional – Asset composition

Almost 87% of individual investor assets are held in equity-oriented schemes. Debt oriented schemes account for 8%, ETFs/FoF at 3% and the remaining 2% in liquid/money market instruments.

On the other hand institutional assets are spread across Liquid/Money market instruments at 28%, Debt oriented schemes at 25%, ETFs/FoFs at 28% and only 19% of assets in equity oriented schemes.

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Average SIP ticket size rises

The SIP average ticket size moved higher in June 2025 to Rs 2,966, just near the Rs 3,000 mark. The average SIP ticket size is well above the pre-COVID levels of Rs 2,861, which was recorded in December 2019. Mutual funds are now a dominant force vs FPIs. Net inflows for DIIs were Rs 6.5 lakh crore for the last 12 months (till June 2025) vs net outflows of Rs 3.0 lakh crore for FPIs.

Passive fund folios have grown 17x in last 5 years

The passive fund AUM hit an all-time high of Rs 12.33 lakh crore in June 2025, growth of 21% YoY. The share of passive AUM has risen to around 10% of total AUM in June 2021 to 17% in June 2025.

Sectoral/thematic witness high traction

The sectoral/thematic funds category witnessed highest gross/net sales over the last 12 months. While most equity categories witnessed positive net sales in June 2025, the sectoral/thematic fund category received the highest traction. It received Rs 9,634 crore worth of gross sales, redemptions of Rs 9,158 crore, thereby the final net sales of Rs 476 crore. In the last 12 months the net sales were to the tune of Rs 1.04 lakh crore.