Mutual Fund Holdings Near Record Peak at ₹43.74 Lakh Crore in April 2025

India’s mutual fund scene is still on fire. In April 2025, total assets under management (AUM) touched ₹43.74 lakh crore, just shy of an all-time high. What’s behind the rise? Strong investor confidence, steady inflows, and a growing love for SIPs (systematic investment plans). Add to that the boost from digital tools, supportive regulations, and sharper financial awareness, and you’ve got a recipe for expansion that shows no signs of slowing down.

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SIPs Break Records

SIPs hit a fresh high with ₹26,631.88 crore in contributions for April, a 3% jump from March. Over 4.6 million new SIPs were opened, pushing the total to 83.8 million active accounts. By the end of April, SIP assets stood at ₹13.89 lakh crore.

Why does this matter? It shows that regular, disciplined investing is catching on, especially with retail investors who want to smooth out market ups and downs through rupee-cost averaging.

As AMFI’s Chief Executive N. S. Venkatesh says, “SIPs are becoming a long-term wealth-building habit. Even with global uncertainties, Indian investors are sticking with it.”

Equity Funds Stay Strong

Equity-oriented mutual funds continued to pull in fresh money, ₹24,269.26 crore worth in April, to be exact. That marks 50 straight months of positive equity inflows, starting in March 2021. Large-cap funds were the stars this time, drawing ₹2,671.46 crore (a 7.75% bump from March).

However, mid-cap and small-cap funds saw minor dips. Why? Investors seem a bit cautious about high valuations and market volatility.

Still, optimism remains. Edelweiss AMC’s CEO Radhika Gupta explains, “Investors aren’t pulling out; they’re just being choosy. It’s all about picking the right stocks and rotating between sectors.”

Debt Funds Make a Comeback

After two months of net outflows, debt funds bounced back big in April with ₹2.19 lakh crore in inflows. Liquid funds led the pack, bringing in ₹1.88 lakh crore, followed by money market and overnight funds.

So what’s behind this shift? Many are seeking safer, short-term options amid expectations that interest rates may finally stabilise, thanks to the RBI's policy stance.

Hybrid Funds Climb, Gold ETFs Stabilise

Hybrid schemes, those that mix equity and debt, saw a turnaround in April with ₹14,247.55 crore in net inflows. Balanced Advantage Funds (BAFs) were especially popular because they are flexible and can adjust to market swings.

Gold ETFs, which had heavy outflows in March, saw just ₹5.82 crore in outflows this time. That’s a significant drop, hinting that investors still hold onto gold, especially with inflation and geopolitical jitters keeping prices high. Gold remains a popular pick for portfolio diversification.

More Investors, More Reach

In total, mutual funds saw ₹2.76 lakh crore in net inflows during April, bouncing back from a March outflow of ₹1.64 lakh crore. The number of MF folios crossed 236 million, with 187 million belonging to retail investors in equity, hybrid, and solution-based funds.

That growth isn’t just in big cities anymore. Tier 2 and 3 cities are catching up. AMFI reports that B30 (beyond top 30 cities) locations now make up 16.9% of the total AUM, and that share is likely to grow as more people access funds through fintech apps and digital platforms.

Spotlight on Sectoral and Thematic Funds

More investors are targeting specific sectors, especially banking and infrastructure. Infrastructure-focused funds alone brought in over ₹1,000 crore in April. The draw? Confidence in India’s economic recovery and increased government spending.

India’s mutual fund industry is steadily growing despite global tensions and market swings. The constant rise in SIPs and new investors shows that trust in mutual funds is getting stronger.

The road to ₹50 and ₹70 lakh crore in AUM looks achievable. However, how quickly we get there will depend on four big things: more innovative investor education, better tech tools, clear regulations, and the global economic pulse.

Kalpen Parekh, CEO of DSP Mutual Fund, has some advice: “Markets will always move up and down. What matters is staying focused on your goals and not overreacting to every headline.”

Bottom Line

April 2025 confirmed that mutual funds are now a key part of India's investment strategy. With more people entering the market, easier access to funds, and a shift toward smart, long-term thinking, the industry looks set for a strong future.