Retail Power Surges In Mutual Funds As Individual Investors Dominate AUM

Image Source: Business Standard

Franklin Templeton India Mutual Fund has released new data showing a dramatic shift in India’s mutual fund landscape, with individual investors now commanding over 61 percent of total assets under management. Retail investors account for 27.01 percent and highnetworth individuals (HNIs) for 33.67 percent, reflecting a growing democratization of wealth creation.

Key Insights From The Report

Individual investor AUM has grown nearly 8 times over the past decade, outpacing the industry’s 6x growth.
Retail investors now contribute every fourth rupee in mutual funds, while HNIs own onethird of the total AUM.
Equityoriented schemes dominate individual portfolios, comprising 87 percent of their assets, compared to just 19 percent for institutional investors.
Debt schemes, ETFs, and liquid instruments make up the remaining 13 percent of individual holdings.

Market Trends And Investment Behavior

The average SIP ticket size rose to ₹2,966 in June 2025, nearing the ₹3,000 mark and surpassing preCOVID levels.
Passive fund folios have grown 17 times in five years, with passive AUM reaching ₹12.33 lakh crore.
Sectoral and thematic funds saw the highest net sales in the past 12 months, indicating rising investor appetite for targeted strategies.

Institutional Vs Individual Allocation

Corporates hold 37.14 percent of AUM, banks 2.13 percent, and FIIs/FPIs a mere 0.05 percent.
Institutional assets are concentrated in liquid and debt instruments, while individuals favor equity for longterm growth.

Sources: Economic Times, MSN India, Franklin Templeton India MF.