Overall, the industry’s AUM stood at ₹80.23 lakh crore at the end of December 2025.
The share of passive funds in total AUM has steadily increased, rising from 12% in December 2021 to 18% in December 2025. Passive fund folios have grown approximately 18 times over the last five years, with nearly 22% of domestic equity AUM now in passive strategies.
Within the debt fund segment, passive AUM declined slightly from 11% in December 2024 to 10% in December 2025. Equity passives continue to dominate, accounting for about 69% of passive AUM.
Trends in active fund categories
Flexi-cap funds led net sales over the past 12 months, attracting ₹80,979 crore, followed by small-cap funds (₹52,321 crore), mid-cap funds (₹49,939 crore), and large & mid-cap funds (₹42,176 crore).
Arbitrage funds were another top performer, recording net sales of ₹72,318 crore.
Debt funds saw mixed flows in December 2025, with most categories experiencing outflows due to quarter-end adjustments. Money market funds recorded inflows of ₹66,994 crore, low-duration funds ₹23,339 crore, and corporate bond funds ₹21,380 crore, while gilt funds saw outflows of ₹5,680 crore.
Geographic and investor trends
Mutual funds are gaining traction beyond India’s top cities. The share of AUM from B15 cities rose from 26% in September 2020 to 35% in September 2025, while B30 cities’ AUM grew faster than the top 30 cities over the past year, now accounting for 18% of total industry AUM.
Maharashtra remains the largest contributor to mutual fund investments, followed by Delhi, Karnataka, and Gujarat. Hyderabad recorded the highest AUM addition in the past 12 months.
On the investor side, equity funds account for nearly 55% of total AUM, with retail investors holding 44% of equity fund investments, slightly higher than high-net-worth individuals (HNIs) at 42%. In debt funds, corporates dominate with a 69.9% share, followed by HNIs at 19%.
Specialised Investment Funds (SIFs), a relatively new category, now manage ₹4,892 crore, with hybrid long-short funds holding ₹3,874 crore.
Franklin Templeton India, one of the largest foreign fund houses in the country, manages a broad range of mutual fund schemes and operates in 39 cities with collection centers in over 100 locations nationwide. Globally, Franklin Templeton manages $1.53 trillion in assets as of March 31, 2025.
