India's mutual fund industry grows 143% in last 5 years
What's the story
India's mutual fund industry has witnessed a massive growth of 143% in the last five years, with the total assets under management (AUM) reaching an impressive ₹85.76 lakh crore in July 2026. This is a significant jump from ₹35.32 lakh crore recorded in July 2021, according to data from ICRA Analytics. The growth has been largely driven by equity and passive investments as investors shift away from traditional debt products.
Market shift
Equity and passive products drive growth
Equity funds have seen an impressive 224% jump in assets, reaching ₹38.40 lakh crore from ₹11.87 lakh crore during the period under review.
Meanwhile, assets managed by exchange-traded funds (ETFs) and index funds together shot up by a staggering 324%, to ₹15.15 lakh crore from just ₹3.57 lakh crore five years ago.
Account growth
Massive increase in investor accounts
The shift toward equity and passive products is also reflected in the number of investor accounts.
Total mutual fund folios grew to 28.09 crore in July 2026 from 10.55 crore five years ago.
Folios for passive funds jumped to 5.54 crore from just 0.92 crore, while those for equity increased to 18.75 crore, up from 7.18 crore.
Debt fund performance
Debt funds lag behind
Unlike equity and passive products, debt-oriented funds have seen much slower growth.
Their assets under management grew by 27% over the five-year period, to ₹19.46 lakh crore from ₹15.28 lakh crore.
The number of debt folios also increased only marginally during this time frame, to 0.95 crore from 0.81 crore, according to ICRA Analytics.
Hybrid schemes have also witnessed massive growth, with their AUM rising by 183% to ₹11.68 lakh crore from ₹4.12 lakh crore five years ago.