The mutual fund trade in India has grown over six occasions within the final 10 years. Its property beneath administration (AUM) have jumped from Rs 10.83 lakh crore in March 2015 to Rs 69.5 lakh crore in April 2025, in keeping with data obtainable on the Affiliation of Mutual Funds in India (AMFI) portal. This growth stems from adjustments in rules, extra buyers becoming a member of in, and a wider attain into smaller cities. And that is only one in six many years of mutual funds within the nation.
This is a abstract of 5 essential phases within the nation’s mutual fund historical past, as described by trade physique AMFI:
Origins: How UTI set the stage?
The origins of the trade return to 1963, when the Unit Belief of India (UTI) was arrange by an Act of Parliament on the initiative of the federal government and the Reserve Financial institution of India. Its first product, Unit Scheme 1964 (US ’64), created the framework for collective funding in securities. By the tip of 1988, UTI’s property beneath administration stood at Rs 6,700 crore.
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Public sector enters the market
The second part began in 1987 with the entry of public sector mutual funds launched by public sector banks, the Life Insurance coverage Company of India (LIC), and the Basic Insurance coverage Company of India (GIC). SBI Mutual Fund was the primary non-UTI fund to be arrange in June 1987. By the tip of 1993, the trade’s complete AUM had risen to Rs 47,004 crore.
Personal sector and SEBI oversight
The arrival of personal sector mutual funds in 1993 marked a turning level. Kothari Pioneer, which later merged with Franklin Templeton was the primary non-public participant. Round that point, the Securities and Trade Board of India (SEBI) launched its first set of rules for mutual funds. A extra complete framework, the SEBI (Mutual Fund) Rules, 1996 – continues to information the trade in the present day. By January 2003, there have been 33 mutual funds managing property price Rs 1.21 lakh crore, with UTI alone dealing with greater than Rs 44,500 crore.
Consolidation and challenges
The repeal of the UTI Act in 2003 cut up the belief into UTI Mutual Fund, regulated by SEBI, and the Specified Enterprise of UTI (SUUTI). However the international monetary disaster of 2008-09 and SEBI’s abolition of entry masses dented investor confidence. Development slowed between 2010 and 2013, and the trade went by means of a part of consolidation with a number of mergers and acquisitions.
Revival and speedy development
The trade has seen a robust comeback since 2014. AUM went previous Rs 10 lakh crore in Might 2014. It hit Rs 20 lakh crore in August 2017 and Rs 30 lakh crore in November 2020. In simply the previous 5 years, property have greater than tripled going from Rs 22.26 lakh crore in March 2020 to Rs 69.5 lakh crore in April 2025. Throughout this time, investor accounts grew from 8.97 crore folios to 23.63 crore, with about 24 lakh new folios added every month on common.
