Team Siliconindia

• India’s mutual fund AUM hits Rs 58.9 lakh crore, surpassing the combined GDP of Pakistan and Bangladesh.
• Retail participation surges with MF folios rising to 18.6 crore, equity & hybrid schemes dominate.
• Top AMCs like SBI, ICICI, and HDFC lead the charge as India’s capital markets outpace South Asian peers.

India’s mutual fund industry has surged to an unprecedented scale, now eclipsing the combined economies of Pakistan and Bangladesh. As of the end of May 2024, assets under management (AUM) in India’s mutual fund sector reached approximately Rs 58.9 lakh crore (about $710 billion), marking a robust 9% jump from Rs 54 lakh crore in March of the same year. In stark contrast, Pakistan’s entire GDP stood at just Rs 31.4 lakh crore (~$380 billion) during this period, while Bangladesh’s economy, at around $446 billion, remains significantly smaller than India’s mutual fund market .

This dramatic valuation places the Indian mutual fund industry nearly double the size of Pakistan’s economy, and even ahead of the combined GDP of both Pakistan and Bangladesh. The comparison underscores not only the scale but also the dynamism of India’s capital markets, driven by a significant increase in retail participation and diversified fund offerings. In just a decade, from May 2014 to May 2024, AUM surged more than six-fold, climbing from Rs 10 lakh crore to nearly Rs 59 lakh crore. The expansion accelerated post-2019, with assets rising twofold in the five years leading to 2024 .

Retail investor adoption has accelerated too, with the number of mutual fund folios soaring from 10 crore in May 2021 to about 18.6 crore by May 2024. Equity, hybrid, and solution-oriented schemes typically favored by individual investors account for approximately 14.9 crore folios, indicating sustained and growing interest among everyday investors.

The major players driving this growth include SBI MF, ICICI Prudential MF, HDFC MF, Nippon India, and Kotak MF, collectively managing the bulk of total AUM. For instance, SBI MF alone held nearly ₹9.9 lakh crore in AUM by June 2024.

The scale of India’s mutual fund industry relative to South Asian economies signals its vital role in mobilizing household savings and channeling them toward structured investment avenues. With a growing emphasis on financial literacy, policy support from regulators, and innovative products, the industry’s growth trajectory shows little sign of slowing. Meanwhile, Pakistan and Bangladesh continue to face economic challenges reliance on IMF assistance and structural reforms while India’s financial sector matures rapidly and asserts itself as a regional powerhouse.