India’s mutual fund industry continues its upward momentum, clocking a 21.94% year-on-year growth in average assets under management (AAUM) as of June 2025, according to the latest data released by ICRA Analytics. On a monthly basis, the industry reported a 3.61% rise in AAUM, with all fund categories witnessing positive movement.
Equity-oriented schemes remained the dominant force, contributing 54.76% to the total AAUM, far ahead of debt-oriented schemes (14.88%) and liquid funds (12.50%). Across most states and union territories, growth-oriented equity schemes were the primary drivers of AAUM.
Maharashtra continued to lead the charts, contributing 40.61% to the industry’s total AAUM, followed by New Delhi, Gujarat, Karnataka, and West Bengal. Together, these top five states accounted for 67.65% of the domestic mutual fund industry’s AAUM, underscoring the concentration of investment activity in key economic hubs.
However, the sharpest surge in monthly AAUM growth came from Nagaland, which saw a 62.47% increase in June 2025. Lakshadweep and Ladakh followed, with monthly growth rates of 19.18% and 18.17% respectively. Nagaland also led the pack in annual growth, recording a remarkable 100.57% year-on-year increase. Dadra and Nagar Haveli was next, with a 56.52% rise.
Notably, equity-oriented schemes formed an overwhelming share of the portfolio in smaller regions, with Ladakh recording the highest proportion at 90.85%, followed by Lakshadweep at 84.07%.
On the flip side, Lakshadweep was the only region to register a year-on-year decline in AAUM, slipping 26.98% in June 2025. Meanwhile, Daman and Diu saw the slowest positive growth, with a modest 13.50% rise.
The data reflects growing investor confidence and increasing financial inclusion in emerging regions, even as urban centres remain the primary contributors to India’s mutual fund industry.
Notably, Indian mutual funds attracted strong investments in June 2025, with investors showing a clear preference for equity schemes despite market volatility. According to Association of Mutual Funds in India (AMFI) data, equity-oriented funds reported net inflows of Rs 23,587 crore, outshining debt and hybrid categories by a wide margin.