Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Residential property sales across India's top seven cities fell sharply in 2025, declining about 14% year-on-year as higher prices, economic uncertainty, and job cuts impacted buyer sentiment. Around 3.96 lakh homes were sold, compared to 4.6 lakh units in 2024. Despite lower volumes, the total value of homes sold rose 6% to over INR 6 lakh crore, driven by steady demand for premium and luxury housing. MMR and Pune led sales but saw notable declines, while Chennai stood out with 15% growth. New housing launches remained stable, with a growing share of high-value homes. Average prices rose 8%, and unsold inventory edged up slightly.
The mutual fund industry continued its strong momentum in 2025, adding a remarkable INR 14 lakh crore to its asset base, taking total assets under management (AUM) to a record INR 81 lakh crore by November. The growth was primarily driven by increased retail participation and record-setting systematic investment plan (SIP) inflows. Advertisement
Venkat Chalasani, Chief Executive Officer of the Association of Mutual Funds in India (AMFI), told PTI that the industry outlook remains positive, with steady SIP contributions helping offset foreign portfolio investor outflows and supporting market stability. He noted that future fund flows are likely to be influenced by valuations and global developments, with investors showing a preference for large-cap, diversified, and hybrid schemes.
Data from AMFI highlighted that 2025 witnessed net inflows of INR 7 lakh crore and an increase of 3.36 crore in the investor base. SIPs alone contributed about INR 3 lakh crore, underscoring their central role in industry growth. This brought the industry's AUM up by 21 per cent from INR 67 lakh crore at the end of 2024.
Although the growth rate in 2025 was slightly lower than the 31 per cent increase recorded in 2024 and the 27 per cent in 2023, the longer-term trajectory remains strong. The mutual fund sector had posted 7 per cent growth in 2022 and nearly 22 per cent in 2021, adding INR 50 lakh crore to its asset base over the past five years.
Himanshu Srivastava, Principal Manager Research at Morningstar Investment Research India, attributed the 2025 AUM surge to strong equity market performance and sustained retail participation through SIPs. He added that the ongoing financialisation of household savings, rising participation from first-time investors, and the preference for mutual funds as a regulated investment vehicle were significant contributors.
Chalasani observed that medium- to long-term growth would continue to be supported by rising financial awareness, wider retail participation beyond metropolitan centres, and continued adoption of SIPs. The industry has now recorded its 13th consecutive annual increase in AUM after earlier declines in the last decade, reflecting a structural shift toward long-term investing, supported largely by steady inflows into equity schemes.
The 49-player industry recorded total inflows of INR 7 lakh crore until November, led by equity funds, arbitrage funds, index funds, and exchange-traded funds (ETFs). Around INR 3.22 lakh crore flowed into equity-oriented schemes, while nearly INR 3 lakh crore went into debt schemes. Equity schemes, which have attracted uninterrupted monthly inflows since March 2021, were the biggest draw for investors in 2025.
Market performance further bolstered investor confidence, with the Nifty 50 and BSE Sensex rising 8.4 per cent and nearly 10 per cent respectively. Net inflows into equity-oriented schemes stood at INR 3.53 lakh crore, reflecting the long-term investing trend. SIP contributions consistently exceeded INR 29,000 crore in September, October, and November, peaking at an all-time high of INR 29,529 crore in October. Overall, annual SIP investments crossed INR 3.03 lakh crore, the highest ever recorded.
Harsh Jain, Co-founder and COO of Groww, noted that the rise in SIP inflows indicates a structural shift in investor behaviour, with SIPs increasingly becoming the default investment method, particularly among younger investors.
Debt fund flows benefited from attractive yields, expectations of a softer interest-rate cycle, and their growing use for short-term cash management and portfolio diversification. Gold funds also attracted INR 31,300 crore in inflows as investors sought safety amid economic uncertainty, geopolitical risks, and changes in taxation norms. Their AUM rose from INR 44,595 crore in December 2024 to INR 1.10 lakh crore by November 2025.
On the regulatory side, SEBI revamped the mutual fund expense framework by introducing the Base Expense Ratio (BER), which excludes statutory levies like STT and GST from core costs. Brokerage caps were reduced, and the additional exit load introduced in 2018 was withdrawn. The new regulations will take effect from April 1 next year, aiming to enhance transparency for investors.
Source: PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
