Mutual Funds: Post-Pandemic Retail Momentum Drives Assets Under Custody To Rs 71 Lakh Crore

The assets under custody of India's mutual fund industry rose to Rs 70.9 lakh crore during the month of October, according to NSDL data. This notes a remarkable rise from Rs 58.5 lakh crore in January this year.

The assets under custody have seen a notable spike after the pandemic. In the span of eight years, AUC has risen from Rs 19.3 lakh crore in 2017 to Rs 44.05 lakh crore in 2023. Assets under custody saw a notable jump during December 2024 when the industry’s asset under custody rose to Rs 59.35 lakh crore.

Retail investors have also contributed to the growth as the systematic investment plans or SIPs grew the assets under custody of the industry.

The SIP contribution rose to Rs 29,361 crore in September, as compared to Rs 28,265 crore in August 2025. The monthly SIP inflows had hit a record Rs 29,361 crore in September 2025. This marks nearly 20% uptick, when compared to the Rs 24,509 crore during the previous year.

Actively managed equity mutual funds recorded a Rs 30,421.69 crore inflow during September, lower by 9% compared to the inflow of Rs 33,430.37 crore recorded in August, as per the monthly data released by the Association of Mutual Funds in India.

Inflows across the board saw its slip as compared to August, with debt funds leading the outflow. Net inflow of the mutual fund industry was an outflow of Rs 43,146.32 crore, as compared to an inflow of Rs 52,442.78 lakh crore the previous month.

The total inflows into active equity accounted for by NFOs stood at Rs 274 crore in the month of September. Index funds saw the most number of NFOs, with four launches during the month. The inflows during the month of August stood at Rs 2,056 crore.

The mutual fund data for the month of October is expected to be released on Nov. 11, according to the Assosication of Mutual Funds India.