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Growth momentum in direct MFs sustains even as mkts wobble

Business Standard

|

January 15, 2026

Individual investors’ AUM in direct plans soars 43% in 2025, outpacing 11% growth in regular plans

- ABHISHEK KUMAR

The post-pandemic surge in ‘direct’ investing in mutual funds continued through 2025, even as equity markets posed challenges for investors.

Assets under management (AUM) in direct plans jumped 43.5 per cent in 2025 (as of November), sharply outpacing the 11 per cent growth recorded by regular plans of individual investors.

Direct plans — the lower-cost option for ‘do-it-yourself’ (DIY) investors — have been consistently outpacing growth in recent years. It was driven by rising investor awareness following the post-Covid market rally, the ease of investing through fintech platforms, and a relatively smaller base.

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