Indian mutual fund industry AUM grew 20% CAGR in past 10 years vs 8% in US: Franklin Templeton India MF

The Indian mutual fund industry’s asset under management has grown at a rate of 20% CAGR in the past 10 years, and 24% CAGR in the last 5 years, according to a press release note by Franklin Templeton India Mutual Fund on the development in the Indian mutual funds industry.

The industry’s AUM now stands at an all-time high level of Rs 72.2 lakh crore. The domestic mutual fund industry has added over Rs 13.3 lakh crore to AUM over the past year. In comparison, the US Mutual Fund assets have grown over 2X at 8% CAGR in the last decade. The overall assets under management (AUM) grew by 24% CAGR in the last 5 years and 20% CAGR in the last 10 years respectively, ended May 2025.

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The domestic mutual fund industry has become a force to reckon with, it can negate the impact of FII outflows. Net inflows for DIIs were Rs 6 lakh crore for the last 12 months (till May 2025) vs net outflows of Rs 3.1 lakh crore for FPIs.

The mutual fund industry’s asset under management’s percentage to bank deposits in India has grown 3X in the past 10 years. It has grown from 12.6% in 2015 to over 31% in May ’25. MF AUM is now about one third of Bank deposits.

The mutual fund industry is moving beyond the top 15 cities in India. The share of B15 cities rose from 25% in March 2020 to 35% in March 2025. The B30 cities’ AUM Growth Outpaced T30 AUM Growth. Share of B30 AUM in Industry AUM increased from 16% in Dec 2020 to 18% in May 2025

Maharashtra, Delhi, Karnataka and Gujarat remain the top 4 states in term of AUM generation. But in terms of growth, Telangana (32.08%) and Haryana (27.90%) have seen the highest AAUM growth over the year.

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The total Investor count rose to 5.49 crore in May 2025, around 3.19 lakh investors added in May 2025.

As much as 89 lakh new investors were added in the last 12 months vs 78 lakh in the same period last year. The sectoral/thematic funds’ category witnessed the highest gross/ net sales over the last 12 months. Most equity categories witnessed positive net sales in May 2025.