Mutual fund AAUM grows 16% YoY in August; equity schemes lead across regions: ICRA Analytics

Average Assets Under Management (AAUM) in India’s domestic mutual fund industry grew 16.16% year-on-year (YoY) for August 2025, according to ICRA Analytics.

On a monthly basis, AAUM declined slightly by 0.38%.

Growth-oriented equity schemes continued to be the largest contributor to overall AAUM, accounting for 54.57%, followed by debt-oriented schemes at 14.76% and liquid schemes at 13.04%.

Among regions, Ladakh recorded the highest proportion of equity-oriented investments at 90.82%, followed by Lakshadweep at 83.32%. Maharashtra led in total AAUM contribution, accounting for 40.59%, while Delhi, Gujarat, Karnataka, and West Bengal contributed under 10% each.

The top five regions together represented 68% of the domestic mutual fund industry’s AAUM.

On a monthly basis, Dadra and Nagar Haveli showed the largest growth in AAUM at 8.35%, followed by Haryana (5.24%) and Odisha (4.41%). On a yearly basis, Dadra and Nagar Haveli again led with 49.36% growth, followed by Mizoram at 33.04%. All states except Lakshadweep experienced AAUM growth over the year, with Goa recording the lowest at 11.86%. Lakshadweep’s AAUM fell 41.92% YoY in August 2025.

The data indicates that equity-based schemes remain the dominant investment type across India, including in smaller and remote regions, while debt and liquid schemes continue to contribute significantly to total AAUM.

In a separate report, ICRA Analytics said that small and mid-cap mutual funds have outperformed large-cap schemes over longer investment horizons.

Over the past five years, small-cap funds delivered compound annual returns of 28.27%, while mid-cap funds returned 25.33%. Large-cap funds trailed at 17.75%. On a three-year basis too, mid- and small-cap categories posted nearly 19–20% returns, compared with 13.47% for large caps.

Though one-year returns were negative across the board — with small caps down 6.41%, mid-caps 3.95%, and large caps 3.77% — investors continue to favor smaller companies.