IGI Logo

India's asset management industry has witnessed a remarkable growth of more than 6 times in the last 10 years, with its assets under management (AUM) growing to Rs 66.93 lakh crore in December 2024 compared to Rs 10.51 lakh crore in December 2014, according to a report on Friday. 

Passive funds' AUM grew to Rs 10.85 lakh crore with total of 16 per cent market share, while active funds AUM stands at Rs 56.08 lakh crore as of December 2024.

According to the report by Motilal Oswal Asset Management Company (MOAMC), equities took away majority of the share with 60.19 per cent of total AUM, followed by 26.77 per cent in debt, 8.58 per cent in hybrid and 4.45 per cent in others.

“This expansion reflects the industry’s ability to meet diverse investor needs and strengthen the financial ecosystem. Innovation, technology, and tailored investment solutions will be key to sustaining growth and navigating future opportunities,” said Prateek Agrawal, MD and CEO, Motilal Oswal Asset Management Company.

The mutual fund (MF) industry welcomed net inflows of 198,000 crore in Q3 FY25, spearheaded by equity funds, particularly in the active segment. This quarter saw the launch of 84 new schemes, which garnered around 24.8K crore.

According to the report, in the equity segment, broad-based funds took the spotlight, capturing over 69 per cent of the net inflows in this category.

Debt funds experienced net inflows amounting to 38,000 crore, primarily driven by Liquid funds. Passively managed Target Maturity funds saw significant outflows of around 8,000 crore.

Multi Asset funds lead with net inflows of 9.3K crore, followed by Balanced Advantage funds (4.8K crore).

Gaining clarity on the movement of funds within financial markets is essential for making strategic and informed investment decisions.

The insights highlight emerging patterns, such as the dominance of Active Flexi Cap and Mid Cap funds and the rise of Passive Funds to a 16 per cent market share, said the report.