Mutual funds scale Rs 75 lakh crore AUM: Share of passive funds has more than doubled – Here's all you need to know

India’s mutual fund industry continues its strong growth trajectory, scaling a fresh peak in August 2025, with assets under management (AUM) touching an all-time high of Rs 75.19 lakh crore — up 12.7% from Rs 66.7 lakh crore a year ago, according to a Franklin Templeton report.Equity-oriented schemes continue to dominate, with AUM at Rs 53.9 lakh crore, rising 10.3% year-on-year. Debt funds also saw strong momentum, with fixed-income AUM jumping 19.4% as moderating interest rates boosted investor appetite for safer, steady-yield products.Systematic Investment Plans (SIPs) remained the key driver of retail participation, while monthly SIP inflows in August hit Rs 28,265 crore, up 20% year-on-year. While the total number of SIP accounts dipped slightly by 0.2%, the average monthly ticket size rose to Rs 2,947, signaling higher investor commitment. Over the last 12 months, SIP contributions surged 35% to Rs 3.17 lakh crore from Rs 2.34 lakh crore a year ago, the report said.Passive investing continues to gain traction. Passive fund AUM reached Rs 12.19 lakh crore, accounting for 16% of total industry assets and marking an 11.3% rise from last year’s Rs 10.96 lakh crore. Domestic equity passive funds made up nearly 73% of this pool, underscoring the growing tilt toward low-cost index funds and ETFs.Smaller cities are fast emerging as growth hubs. Beyond-top-30 (B30) locations now contribute 18% of overall AUM, outpacing top-30 (T30) cities. Meanwhile, retail investors hold a commanding 87% share of equity AUM, reflecting their growing dominance in the market. On the institutional front, domestic investors continue to counterbalance foreign flows. Domestic institutional investors (DIIs), including mutual funds, pumped in Rs 7.3 lakh crore over the past 12 months, while foreign portfolio investors (FPIs) pulled out Rs 3.8 lakh crore during the same period.