A new milestone crossed! India’s mutual fund industry has officially breached the ₹70 lakh crore mark in AUM, closing May 2025 at ₹72.20 lakh crore. While market volatility tested investor patience, retail participation remained strong—driven by record SIP flows and healthy hybrid fund inflows.
Market Snapshot
| Indicator | April 2025 | May 2025 | % Change |
|---|---|---|---|
| Total AUM | ₹69.99 lakh Cr | ₹72.20 lakh Cr |  3.04% |
| Net Inflows | ₹2.77 lakh Cr | ₹29,108 Cr |  due to debt outflows |
| SIP Contribution | ₹26,632 Cr | ₹26,688 Cr (record high) | Slight increase |
| SIP Accounts | 8.38 Cr | 8.56 Cr | 17.87 lakh new |
Equity Funds: Strong, Stable & Still Growing
- AUM: ₹32.05 lakh crore ( 4.8%)
- Net Inflows: ₹19,013 crore
- Top Performers:
- Flexi-cap funds led with ₹3,841 Cr in inflows
- Small-cap funds grew AUM by 9.4%, with ₹3,214 Cr inflows
- 3 new NFOs launched in multi-cap and sectoral themes, raising ₹2,732 Cr
- Sectoral/Thematic funds and Multi-cap funds saw renewed interest
Equity inflows moderated compared to April, but retail participation remains consistent. ELSS saw typical seasonal outflows (-₹678 Cr).
Debt Funds: Marginal Dip Despite Gains
- AUM: ₹17.54 lakh crore ( 0.16%)
- Net Outflows: ₹15,908 crore
- Notable Trends:
- Corporate Bond Funds led with ₹11,983 Cr inflows ( 7.7% AUM)
- Liquid and Overnight Funds saw heavy outflows (₹40K+ Cr)
- Money Market Funds gained ₹11,223 Cr due to better short-term yields
- Corporate Bond Funds led with ₹11,983 Cr inflows (
Bond yields dipped amid surplus liquidity, stable inflation, and RBI’s dovish stance.
Hybrid Funds: All-Time High Inflows
- AUM: ₹9.55 lakh crore ( 4.4%)
- Net Inflows: ₹20,765 Cr – highest ever for this category
- Stars of the Month:
- Arbitrage Funds: ₹15,702 Cr inflows due to market volatility
- All hybrid sub-categories saw net inflows
Investors moved to hybrid schemes for balance and volatility protection.
Passive Funds: Growing Steady, Month #55 of Inflows
- AUM: ₹12.24 lakh crore ( 2.7%)
- Net Inflows: ₹5,526 crore
- ETF Domination:
- Other ETFs: ₹4,087 Cr inflow
- Index Funds: ₹1,104 Cr
- Gold ETFs rebounded with ₹292 Cr inflow, driven by global uncertainty
Passive investing continues its strong run, appealing to cost-conscious and long-term investors.
SIP Momentum: Another Record Month!
- ₹26,688 Cr SIP inflows – highest ever
- 8.56 Cr SIP accounts – a rise of 59.15 lakh
- SIP assets now ₹14.61 lakh crore, nearly 20.24% of total MF AUM
Investors are staying disciplined and consistent despite market noise.
What This Means for You
Stay the course with SIPs—it’s working!
Explore Hybrid and Arbitrage funds during volatility
Use Corporate Bond and Money Market funds to balance liquidity
Diversify with Index & Gold ETFs for long-term goals
Catch up on April’s insights:
April 2025 Post on 5paisa Community
How are you adjusting your MF strategy in this market?
Let us know in the comments 