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The mutual fund market in India is poised to go on a rampage growth, with one recent report by CRISIL and AMFI (Association of Mutual Funds in India) showing the assets under management (AUM) is set to go above 300 trillion (3 lakh crore) by 2035. This is a bold forecast, which has been presented in industry seminars in early 2026, as the industry grows fast and more households are industry participants in financial markets.

By January 31, 2026, the AUM of the industry increased to about 72.5 trillion, which is impressive considering its 10 trillion level in 2014 and 40 trillion only half a decade ago (2021). Research The systematic investment plans (SIPs), digital onboarding, the increase in financial literacy, and the good performance of equity markets have led the compound annual growth rate to be at 25 30 percent in recent years.

The most significant motivators behind the ₹300 trillion mark are:

• Surging SIP Inflows — In late 2025, Monthly SIP contributions had climbed to over 25,000 crore and are likely to reach 50,000 -60,000 crore by 2030, and the number of unique SIP investors today (10 crore), is expected to rise to 25-30 crore by 2035.
• Rising Equity Culture Equity-based funds currently control more than 55 percent of total AUM, compared to 30 percent 10 years ago, with retail investors moving out of fixed deposits and gold to mutual funds.
• Demographic Strength- The fact that India has a young population (median age of about 28) and a rising middle class that is investing most of its savings in long term wealth creation plans is advantageous.
• Digital and Regulatory Push, coherent applications, no commission direct plans, and investor education initiatives by AMFI has decreased entry barriers.
• Corporate & HNIs, institutional inflows of provident funds, insurance firms as well as high net worth individuals are also picking up.

To achieve a 300 trillion industry in 2035, the experts estimate a persistent CAGR of this figure against the current levels of around 15 -18 - with the industry deemed capable of achieving similar levels based on historic trends and macroeconomic tailwinds such as the predicted 6.57 growth in GDP.

The milestone would make India top 5-7 mutual fund markets in the world, which may be as large as Japan and the UK. Nonetheless, there are problems: volatility of the market, discipline of the investors in the bad times, and proper penetration in the Tier-2/3 cities and rural area.

This growth is a good indicator to the investor that the ecosystem is maturing and that it has more product options, improved governance, and that it can generate wealth over the long term. According to AMFI Chairman N. S. Venkatesh, the mutual funds are not merely an option of investment any more, but they are also effectively becoming the foundation of wealth creation in the households in India.

In the future, in 2035, millions of Indian families would be changed by the 300 trillion goal and this will prove that the key to financial independence is a long-term investment in mutual funds and discipline.