India's Asset Management Landscape: The Path to Financial Empowerment

Gold has been in the spotlight with its record-breaking rally, surpassing the Rs.88,310 per 10 grams mark for the first time, as geopolitical and economic uncertainties drove investors toward the safe-haven asset.

- Ritesh Kumar Binani

Meanwhile, silver also reached a new high of Rs.1,01,999 per KG in 2025 reflecting growing demand and its dual role as both a monetary and industrial metal.

Introduction:

Projected to become the world's third-largest economy within the next decade, India has demonstrated robust economic expansion, significantly outpacing global averages with GDP growth over six percent annually since 2012. This economic vitality has fueled rising incomes and fostered a strong savings culture, with gross national savings representing a substantial portion of the national disposable income, far exceeding rates seen in many developed nations.

Despite this high propensity to save, traditional financial avenues have historically captured the lion's share of household financial assets. The asset management sector, particularly the mutual fund segment, while growing rapidly, started from a relatively small base. Initial estimates placed the industry AUM around USD 350 billion in March 2018, part of a broader asset management sphere (including pensions and alternatives) valued at roughly USD 550-650 billion then.

However, the landscape has transformed dramatically. By March 2025, the Assets Under Management (AUM) of the Indian mutual fund industry had surged to approximately Rs. 65.74 lakh crore (around USD 780 billion). Over the past ten years, this represents a growth greater than six times. Today, mutual funds represent a significant and growing portion of India's GDP - reaching a record 18.2% in fiscal 2024 - indicating increasing investor acceptance.