Nippon India Mutual Fund experiences exceptional expansion among leading mutual fund companies during the June period.
The Indian mutual fund industry has demonstrated strong growth in the second quarter of 2025, with total Assets Under Management (AUM) reaching an approximate Rs. 72.19 lakh crore (US$ 836.31 billion) as of May 2025, marking a 3% increase from April 2025 [4].
Equity mutual funds alone have seen AUM rise to Rs. 30.57 lakh crore (US$ 358.38 billion) by December 2024, a 40.3% year-on-year increase [4]. This growth is supported by all-time high SIP contributions of Rs. 26,688 crore (US$ 3.09 billion) in May 2025 and equity scheme net inflows of Rs. 19,013 crore (US$ 2.20 billion) [4].
Top Performing Mutual Fund Houses
Three leading Asset Management Companies (AMCs) — HDFC AMC, Nippon India AMC, and Shriram AMC — have emerged as key players in the industry, driven by steady inflows and Systematic Investment Plans (SIPs) [3].
Nippon India AMC commands the largest retail investor base, with over 21 million unique investors as of June 2025, representing more than one-third of all mutual fund investors in India [3]. HDFC AMC, on the other hand, has a target stock price around Rs 6,530 and is known for its growth driven by SIP inflows and equity focus [3]. Shriram AMC, being a beneficiary of the mutual fund boom in India, has also seen significant growth boosted by inflows [3].
Performance Highlights
Some notable funds and AMCs include UTI Aggressive Hybrid Fund Regular Plan (Growth), which reported a 5-year return of 19.6% as of August 2025 [5], and HSBC Large Cap Fund Direct-Growth, which generated an 18.67% 5-year return [5].
Specific equity-focused funds like the Wasatch Emerging India Fund show portfolio concentration in high-growth Indian companies such as Bajaj Finance Ltd (10.39% of portfolio) and others, with its net assets around $263 million as of June 2025 [2]. This fund has shown a solid alpha (risk-adjusted performance) over multiple time horizons, such as 6.58 over 5 years [2].
Trends and Future Outlook
The industry's future outlook is strong, with projections of AUM nearly doubling from Rs. 95.24 lakh crore in FY24 to Rs. 199.13 lakh crore (around US$ 2.3 trillion) by FY29 driven by growing retail participation and increasing financial literacy [4].
In the June quarter, Nippon India Mutual Fund was the only fund house among the top-15 to register a double-digit growth in average AUM. HDFC MF also registered a growth of 7% in the June quarter to ₹8.29 lakh crore. SME IPOs hit an eight-month high, with the industrial sector leading in listings (NSE Market Pulse). The mutual fund industry is continuing its steady march towards the milestone of ₹100 lakh crore in assets under management.
SBI MF topped the table with a growth of 6% in the June quarter to ₹11.40 lakh crore. Retail investors are playing a significant role in the growth of the mutual fund industry, as noted by Viraj Gandhi, CEO of Samco MF. There is strong confidence among retail investors, as seen through the sustained SIP flows.
Other Developments
Additional tariffs and sanctions on India may limit Russian crude oil exports, according to the US Energy Information Administration. FIs have posted four consecutive weeks of outflows amid US trade tensions. IDBI Bank unions have appealed to the Government against privatisation.
In the global market, the US Market Outlook showed the Dow Jones, S&P 500 gaining, while the NASDAQ Composite closed the week at a record high. The benchmark Sensex increased by 8% in June to 83,606 points.
In conclusion, the Indian mutual fund industry in Q2 2025 is experiencing robust growth in both AUM and investor participation, particularly driven by equity schemes and SIP inflows. Top AMCs like HDFC, Nippon India, and Shriram AMC demonstrate strong performance and expanding market share, with total AUM expected to more than double by 2029 [3][4][5].
- The Indian mutual fund industry is projected to nearly double its Assets Under Management (AUM) from Rs. 95.24 lakh crore in FY24 to approximately Rs. 199.13 lakh crore (around US$ 2.3 trillion) by FY29, driven by growing retail participation and increasing financial literacy.
- Three leading Asset Management Companies (AMCs) — HDFC AMC, Nippon India AMC, and Shriram AMC — have emerged as key players in the industry, driven by steady inflows and Systematic Investment Plans (SIPs).
- The mutual fund industry is continuing its steady march towards the milestone of Rs. 100 lakh crore in assets under management, with various AMCs and funds showing impressive growth figures and performance.
- Equity mutual funds alone have seen AUM rise to Rs. 30.57 lakh crore (US$ 358.38 billion) by December 2024, a 40.3% year-on-year increase, supported by all-time high SIP contributions and equity scheme net inflows.
- Some top-performing mutual funds, such as the UTI Aggressive Hybrid Fund Regular Plan (Growth) and HSBC Large Cap Fund Direct-Growth, have generated impressive 5-year returns of 19.6% and 18.67%, respectively.
- Specific equity-focused funds like the Wasatch Emerging India Fund have shown portfolio concentration in high-growth Indian companies with solid alpha (risk-adjusted performance) over multiple time horizons.
- The US Market Outlook showed the Dow Jones, S&P 500 gaining, while the NASDAQ Composite closed the week at a record high, demonstrating growth in the global financial markets.
