Mutual Fund Industry Welcomes 6.40 Lakh New Investors, Logs ₹1.79 Lakh Crore Inflows in July 2025

In July 2025, India’s mutual fund sector sustained its growth trajectory by adding 6.40 lakh new investors, taking the total unique investor base to 5.59 crore, according to Angel One. The same period also saw substantial inflows worth ₹1.79 lakh crore.

Investor Base Expands, Folios Grow Rapidly

The number of unique investors rose from 5.53 crore to 5.59 crore during the month. Folio counts climbed by 44 lakh to reach 24.57 crore, up from 24.13 crore. Equity funds accounted for the bulk of this growth, with 31.35 lakh new folios; hybrid funds added 3.35 lakh, and debt funds contributed 2.65 lakh new folios.

AUM Strengthens but Average Size Shrinks

Assets under management (AUM) in Tier-30 cities rose by 1.5% to ₹61.08 lakh crore, while B-30 cities saw AUM grow by 0.56% to ₹14.29 lakh crore. Although participation increased, the average AUM per folio declined—dropping 1.5% in Tier-30 cities (to ₹2.69 lakh) and 1.9% in B-30 cities (to ₹1.03 lakh)—suggesting that new investors are deploying smaller amounts.

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SIP Continuity and Contribution Trends

Systematic Investment Plan (SIP) inflows gained momentum, with total contributions rising over 4% to ₹28,500 crore in July (compared to ₹27,300 crore in June). Outstanding SIP accounts increased 2.8% to 9.45 crore, and active accounts grew 5% to 9.11 crore. Despite this, SIP assets under management fell marginally by 0.7% to ₹15.19 lakh crore.

New Fund Offers (NFOs) and Distributor Growth

July saw the launch of 30 new fund offers, including 13 passive funds—among them 6 index funds and 6 non-commodity ETFs, plus one gold ETF. Equity-oriented schemes accounted for 10 NFOs (7 of them being sectoral or thematic), supplemented by 5 debt and 2 hybrid schemes.

The industry also witnessed 6,330 new ARN (AMFI Registration Number) registrations, largely from corporate employees and mutual fund distributors. Most registrations came from Maharashtra (21.9%) and Gujarat (10.7%).

Conclusion

July 2025 proved to be a robust month for the mutual fund sector in India. With 6.40 lakh new investors, ₹1.79 lakh crore in inflows, and a surge in SIP activity, the industry demonstrated strong retail interest and continuing adoption across cities. Although AUM per folio dipped, the expansion across equity, hybrid, and debt segments—alongside new fund launches and distributor growth—highlights growing financial inclusion and enthusiasm among investors.