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The mutual fund sector ended 2025 on a positive note, even though the markets mostly stayed flat. Recent data shows that the mutual fund industry is valued at Rs 82 lakh crore and gained 64 lakh new investors over the past year.
The total number of mutual fund investors grew from 5.25 crore at the end of 2024 to 5.90 crore by December 2025. This shows a 25% increase in investors in just one year. It shows the strong trust of people in mutual funds, even in uncertain market conditions.
Here is a quick breakdown of the numbers:
On the unique PAN front, mutual fund investors grew by 63.98 lakh in 2025. The PEKRN group decreased slightly from 3.45 lakh - 3.23 lakh because of stricter KYC rules that were implemented.
That said, the momentum for new MF investors slowed a bit this year. Back in 2024, the industry onboarded over 1 crore fresh faces. In 2025, with similar flat markets, additions dropped nearly 40%.
Here is how new investor addition stacks up against Nifty 50 performance:
A top industry CEO, speaking off the record, pinned part of the dip on fewer new fund offers (NFOs). "It just makes more business sense these days for fund houses and distributors to push NFOs or smaller schemes", he explained. "Pumping money into massive existing funds is not as rewarding. With fewer NFOs in 2025 compared to 2024, we saw fewer new MF investors jumping in".
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Navneet Munot, the Managing Director and CEO of HDFC Mutual Fund, has a positive outlook. "Adding 64 lakh mutual fund investors in 2025 is impressive, especially when three-year returns on many schemes have softened", he noted. He credits the unstoppable SIP rally for pulling in these new faces. Month after month, systematic investment plans keep the growth engine humming.
Nilesh Shah, MD & CEO of Kotak Mutual Fund, pushes for wider reach. To ramp up new MF investors, he says the industry must target smaller cities and towns. "Mutual funds are a pull product right now, fueled by campaigns like Mutual Fund Sahi Hai, distributor hustle and strong fund performance", Shah pointed out. "But we mainly serve the top 30 cities and high-income customers. Now is the time to open branches in semi-urban and rural areas and improve our distribution there".
Swarup Mohanty, Vice Chairman & CEO of Mirae Asset Mutual Fund, aimed higher, he had hoped for 80 lakh new investors. Still, 64 lakh feels solid. "We have been adding over 5 lakh per month amid market swings", he said. "Growth has eased off, partly due to commodity rallies stealing some spotlight".
Mohanty suggests a new approach to sales. He said, "We should note that past returns do not guarantee future returns, unlike stocks promoted by expected earnings. However, investors are more knowledgeable now and understand the risks involved. Let us promote mutual funds with a forward-looking message to attract more new investors”.
The mutual fund industry is growing steadily in 2025, thanks to SIP and effective strategies. As markets change, there will be more focus on unexplored areas to drive future growth.
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