Mutual fund boom in India: Guess what's fuelling the Rs 65 lakh crore surge

India’s mutual fund industry is growing fast, but most of the money still comes from a few big cities. As of March 2025, Mumbai, Delhi, Bengaluru, Pune and Kolkata together made up more than half of the country’s total mutual fund assets, which accounts to 52.52%. That’s about Rs 34.52 lakh crore out of the total Rs 65.74 lakh crore.

Mumbai alone leads the chart, contributing 27% (Rs 17.75 lakh crore), followed by Delhi at 12.63%, Bengaluru at 5.39%, Pune at 4%, and Kolkata at 3.49%. These numbers haven’t changed much since last year, according to data from the Association of Mutual Funds in India (AMFI).

WOMEN STEPPING UP

There’s been a clear rise in women investing in mutual funds. By March 2025, out of the total 5.34 crore investors, around 1.38 crore (25.91%) were women. That’s a good jump from 24.2% in March 2024.

“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,” mentioned the report.

WHERE ARE INDIVIDUALS INVESTING?

Individual investors, including NRIs, retail participants, and high-net-worth individuals, hold 63.2% of the total mutual fund assets—almost the same as last year. Most of their money is placed in equity funds, followed by hybrid, debt, and passive funds.

Interestingly, in most states, individuals account for over 63% of the investments. However, in Delhi and Maharashtra, a larger share comes from companies and institutions. In contrast, smaller states and union territories like Lakshadweep, Tripura, and Bihar see individuals holding more than 95% of mutual fund assets.

Meanwhile, India’s mutual fund journey is gaining momentum, driven by urban investors and a noticeable rise in women participants. Going forward, spreading financial awareness beyond the big cities could further widen the reach of mutual fund investments.