Mumbai, February 23 India's managed funds industry's assets under management (AUM) is projected to reach Rs 455 lakh crore by March 2030, more than doubling from current levels, according to a report released on Monday.
The report by Crisil Intelligence, a division of the rating agency, stated that the total assets of the managed investments industry, which includes mutual funds and alternative investment funds (AIFs), stood at Rs 212 lakh crore as of March 2025, accounting for about 64 per cent of GDP.
It is estimated that this will rise to Rs 455 lakh crore by March 2030, or nearly 73 per cent of projected GDP, reflecting the deepening of India's capital markets and the increasing financialization of household savings.
Over the five years ending March 2025, managed fund assets logged a compound annual growth rate (CAGR) of around 18 per cent, significantly outperforming time deposits, which grew at about 11 per cent during the same period.
As a result, managed funds now represent about 106 per cent of outstanding time deposits, highlighting the shift away from traditional savings avenues towards market-linked, professionally-managed products, the report said.
The report noted that alternative investment funds (AIFs) have emerged as the fastest-growing segment within managed investments. AIF commitments increased from Rs 3.70 lakh crore in March 2020 to Rs 13.49 lakh crore in March 2025, registering a CAGR of around 30 per cent. Their share in the overall managed funds industry is projected to rise from 4 per cent in March 2020 to 9 per cent by March 2030.
As of December 2025, total commitments to AIFs stood at approximately Rs 15.74 lakh crore, with over 1,700 AIFs registered, nearly 63 per cent of which were launched after April 2021.
The combined share of mutual funds and equity in household savings rose from 4 per cent in 2020 to 15 per cent in 2025, signaling a clear increase in risk appetite and participation in financial markets.
Retirement funds and life insurance assets have also steadily expanded, supported by the formalization of the economy, rising income levels, and policy measures such as the new security code and the anticipated 8th Pay Commission. Retirement fund assets stood at Rs 53.39 lakh crore, while life insurance AUM reached Rs 67.79 lakh crore as of March 2025, the report noted.
Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) have gained traction as yield-oriented vehicles. Their combined assets grew to Rs 7.78 lakh crore in March 2025 from Rs 2.60 lakh crore in March 2020, registering a CAGR of around 25 per cent.