Mizoram leads monthly mutual fund growth as domestic AAUM rises 19% YoY in July: ICRA Analytics

Mizoram emerged as the fastest-growing state in India’s mutual fund industry in July 2025, with its Average Assets Under Management (AAUM) rising 11.94% month-on-month, according to ICRA Analytics. The domestic mutual fund industry reported a 19% year-on-year (YoY) growth in AAUM for the same period, while monthly AAUM increased by 2.96%.

Equity-focused, growth-oriented schemes continued to dominate, contributing 54.56% to total AAUM, followed by liquid schemes (14.64%) and debt-oriented schemes (13.20%).

Ladakh and Lakshadweep had the highest proportion of equity schemes, with 90.95% and 83.55% of their AAUM in equity, respectively.

Among states, Maharashtra remained the top contributor, accounting for 40.64% of total AAUM. New Delhi, Gujarat, Karnataka, and West Bengal followed, with individual contributions below 10%. Collectively, the top five states represented over 67% of the industry’s AAUM.

On a yearly basis, Nagaland registered the highest AAUM growth at 84.43%, followed by Dadra & Nagar Haveli at 45.99%. All states except Lakshadweep, which saw a 41.82% decline, recorded YoY growth. Goa had the lowest YoY increase at 12.42%.

Equity mutual funds saw a sharp 81% month-on-month jump in net inflows, totaling ₹42,702 crore. Investor interest spanned large-cap, mid-cap, and small-cap schemes, reflecting confidence in India’s macroeconomic fundamentals. ICRA Analytics noted that healthy corporate earnings and positive market sentiment were key drivers behind the inflows.

ICRA Analytics highlighted that equity-oriented schemes were the main drivers of AAUM growth across all states, underscoring sustained investor preference for growth-focused funds despite varied regional trends.