Mutual Fund Boom To Continue: Managed Fund AUM To Double To Rs 455 Lakh Crore By 2030, Says Crisil

The Managed Fund assets under management (AUM) are expected to double to Rs 455 trillion by fiscal 2030, going by an Crisil Intelligence Report titled ‘The Ascent Of Alternatives.' This would take managed investments to 73% of GDP, in comparison to 64% as of last financial year.

This growth is expected to be driven by sustained financialisation of household savings away from low yield deposits, ongoing formalisation of the economy and improved tax/reporting compliance that favours market-linked products and rising equity participation through systematic investment plan-led mutual fund inflows.

To clear the question on what are managed funds, this includes mutual funds, life insurance, retirement funds, portfolio management services (PMS), alternative investment funds (AIFs), real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).

The growth of managed products is likely to be driven by sustained rise of mutual funds and continued scaling of alternative funds, Crisil said in its report. By fiscal 2030, mutual funds are likely to gain the highest market share among managed funds. This surge will be driven by rising equity participation through systematic investment plan-led flows and deeper penetration. AIFs will also gain share as investors, especially domestic institutional investors, seek diversification and enhanced yield within their portfolio.

Managed Funds Outpace Deposits

Over the five years ended March 2025 managed fund AUM have risen to Rs 212 lakh crore from Rd 92 lakh crore in March 2020. As a result managed funds AUM has surpassed traditional savings avenues and now stands at 106% of outstanding time deposits. This also indicates a shift in household and institutional savings from traditional time deposits to market-linked, professionally managed products.

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Alternative Funds Share To Rise To 9% By 2030

Amid the managed products, Alternatives are expected to play a larger role with AIFs, InvITs and REITs gaining traction. The share of alternatives in managed funds AUM is expected to rise from 4% to 9% by 2030.

If you look at the last five years then AIF commitments increased from Rs 3.70 lakh crore in March 2020 to Rs 13.49 lakh crore in March 2025, with the highest CAGR in the dataset being 30%. 

The share of mutual funds is likely to increase from 24% in March 2020 to 33% in March 2030, whereas the retirement funds are likely to sustain their share at 26%. At the same time, insurance's share is expected to decline from 42% in 2020 to 27% in 2030. The significant fall will not be because insurance AUM will fall, but because other segments will grow faster on a smaller base.

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