MUTUAL MOMENTUM

India's AMCs are coming of age with the rapid financialization of household savings and the faster spread of the SIP culture

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Most investors are familiar with mutual funds - but few think about the companies that actually run them.

These behind-the-scenes players, called asset management companies (AMCs), are emerging as key architects of India's financialization story.

India has around 44 registered AMCs (with more awaiting SEBI approval, likely taking the total to 50) that collectively manage nearly ₹75 lakh crore in assets across about 670 mutual fund schemes.

Yet, despite their scale and influence, the sector remains underexplored. It may be time to look at AMCs not just as fund managers, but as a promising investment opportunity in their own right.

The AMC industry's growth has been nothing short of spectacular. From crossing the ₹10 lakh crore-mark in May '14, the total assets under management (AUM) have ballooned to ₹75 lakh crore as of September '25. Investor participation too has surged - folios jumped from 9.33 crore in 2020 to over 25 crore in 2025, with an average of 26 lakh new folios added every month over the past five years. Unique investors (those with multiple folios) have also risen from 1.7 crore in 2018 to 5.5 crore today - a clear sign of investor interest in mutual funds.

Despite this growth, India's mutual fund penetration remains modest. The industry's AUM is 22% of GDP, up from 4.3% in 2002, but still far behind the 130% seen in the US. Fewer than 5% of Indians invest in mutual funds, indicating vast untapped potential. Estimates suggest that by 2028-29, industry AUM could touch ₹100 trillion, with investors doubling to 10 crore and the average investment size rising sharply.

Here are a few data points that suggest a shift in the mutual fund industry dynamic that augurs well for sustainable growth in the AMC industry: