More than half of India's mutual fund assets concentrated in top 5 cities: AMFI data

AMFI, in its latest report, said that India’s mutual fund industry ended the financial year 2025 with assets under management (AUM) at a record high of Rs 65.74 lakh crore. This marks a strong rise of 23.11 percent from the Rs 53.40 lakh crore AUM recorded at the end of the previous financial year.

Mumbai, New Delhi, Bengaluru, Pune and Kolkata collectively accounted for more than half of India’s told mutual funds’ asset under management (AUM), as per latest data published in AMFI annual report for FY25. Mumbai held 27 percent of the total assets, while Delhi held 12.63 percent. Bengaluru held 5.39 percent while Pune and Kolkata each held 3.49 percent of the total AUM.

Aggressive young investors vs stable old investors

Younger investors were shifting towards more aggressive investment strategies while older investors prioritised risk management through diversification, the report said. “The analysis reveals that younger investors are more inclined to take on higher risks, as can be gauged from their significantly higher share of net flows in the equity segment whereas the older investors exhibit a more cautious approach, with comparatively lower percentage of net flows in equity and higher allocation towards debt,” AMFI said.

Hybrid schemes, which provide a balanced blend of growth and stability, were seen being increasingly opted by investors in the higher age brackets, AMFI added.

Women investors rise

Women represented 25.91 percent of the total number of investors in the mutual fund industry during the financial year which ended on March 2025. This marks a notable increase from the 24.2 percent female participation seen in the previous financial year.

“The rise in literacy rates and the growing presence of women in the workforce have been instrumental in enhancing their economic contributions and, as a result, women are now emerging as a key participant in the MF investor base,” AMFI said.

Gold ETF inflows soar 2.75x amid yellow metal’s record rally

Gold ETFs saw a significant 2.75 times jump in flows to Rs 14,582 crore in FY25. This came on the back of strong rally in gold’s prices. “The increase in gold prices is largely due to heightened geopolitical tensions and a weakening global economic outlook, which have led to surge in demand for safe-haven assets like gold – acting as a hedge against the risk,” AMFI said.

Notably, gold ETF is an exchange-traded fund (ETF) that aims to track the domestic physical gold price.

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SIP inflows rally

Investors significantly boosted inflows into SIPs, with annual contributions jumping 45.24 percent on-year to Rs 2.89 lakh crore in FY25. “Investors continued to have considerable appetite for the investment avenue, with new SIP accounts registered during the year rising to 6.80 crore vs 4.28 crore in fiscal 2024. The number of contributing SIP accounts also rose sharply, at 8.11 crore as of March 2025, representing a 27.17% increase compared with April 2024,” AMFI said.

Investors eye long-term SIPs

AMFI said that the ratio of SIP assets held for more than five years saw a substantial rise in FY25, which indicated a shift towards long-term wealth creation strategies. “This trend suggests that investors are embracing disciplined, long-term investing, becoming more patient and less prone to impulsive decisions based on market fluctuations. As the MF industry evolves, this trend is likely to continue, with investors prioritising long-term returns over short-term gains. By adopting a long-term perspective, investors can navigate market volatility and unlock their investments’ full potential, leading to a more stable and sustainable wealth creation,” the firm said.

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