Mutual fund investors below the age of 25 have 47% exposure to equity, reveals AMFI's annual report 2025

The mutual fund (MF) industry ended fiscal 2025 with assets under management (AUM) at a record ₹65.74 lakh crore in March 2025 against ₹53.40 lakh crore in March 2024, reporting a jump of 23.11 per cent.

The asset base expanded on mark-to-market (MTM) gains, induced by equity markets reporting positive returns, as indicated in the Nifty 50 TRI and Sensex TRI rising 6.0 per cent and 5.9 per cent, respectively.

The increase in AUM was also attributed to net inflows summing up to ₹8.15 lakh crore during fiscal 2025, with number of folios rising to an all-time high at end-March 2025.

Higher allocation to equity

Now, investors across age groups have raised their allocation to equity. Those under 25 have invested 47 percent of their assets in equity against 41 percent in FY2020. Those between 25-44 years of age have raised their allocation in equity to 60 percent against 36 percent five years ago, shows the annual report.

Even the older investors (45-58) have invested 66 percent of their assets in equity against 49 percent earlier. Even investors above the age of 59 have invested 56 percent in equity against 40 percent five years ago.

Top 5 cities dominate

Majority of mutual fund assets are concentrated in top five cities, reveals the annual report 2025. The top five cities — Mumbai, Delhi, Bengaluru, Pune and Kolkata — collectively account for over half (52.52 percent). The trend has not changed since last year.

Passive mutual funds

Passive funds’ assets spiked 22.7 per cent on-year to a record high of ₹11.47 lakh crore in March 2025, owing to the category’s sustained appeal to investors, with net inflows more than doubling from the previous year to ₹1.4 lakh crore.

Notably, this shows the fourth consecutive year of uninterrupted net inflows, with no outflows recorded in any single month during this period.

The momentum in the current year was also driven by the introduction of 150 new schemes — 102 index funds, three gold ETFs and 45 other ETFs. These new fund offers collectively raised ₹15,0561 crore, accounting for 11 percent of the total net inflows in the category during the year.

Debt funds

Inflows into debt funds ( ₹1.38 lakh crore) rebounded after three years of successive outflows, as investors sought relatively stable returns and lower risk offered by the category.

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