Fund houses increase on-ground investor outreach as mutual fund industry scales up
India's mutual fund industry reached Rs 80.23 lakh crore AUM in December 2025, up 20% year-on-year, prompting fund houses to intensify investor education efforts. HDFC AMC completed 79 street performances across seven cities under its 'Barni Se Azadi' campaign, while Franklin Templeton launched a 4,000 km nationwide drive covering 21 cities. SIP assets grew to Rs 16.63 lakh crore, accounting for 20.7% of total AUM, with over 27% of retail assets coming from B30 locations, demonstrating successful geographic expansion beyond urban centers.
*this image is generated using AI for illustrative purposes only.
India's mutual fund industry is experiencing remarkable growth, prompting asset management companies to intensify their on-ground investor education efforts. With assets under management reaching new heights and participation expanding beyond metropolitan areas, fund houses are deploying innovative outreach strategies to promote financial literacy and long-term investing habits across diverse demographics.
Industry Growth Momentum
The domestic mutual fund industry has demonstrated strong performance metrics in recent periods. Industry assets under management stood at Rs 80.23 lakh crore in December 2025, representing a nearly 20.00% year-on-year increase. The sector has maintained impressive growth trajectory over the past five years, with AUM nearly tripling and posting a compound annual growth rate of over 21.00%.
| Growth Metric | Value |
|---|---|
| December 2025 AUM | Rs 80.23 lakh crore |
| Year-on-Year Growth | Nearly 20% |
| Five-Year CAGR | Over 21% |
According to ICRA projections, the industry is expected to cross the Rs 100 trillion AUM mark in the coming years, with estimates suggesting potential growth to Rs 300 trillion by 2035. This expansion is attributed to rising participation from Gen Z, women, and households in smaller towns, alongside growing preference for long-term investing through systematic investment plans.
HDFC AMC's Street Theatre Initiative
HDFC Asset Management Company recently completed its investor education campaign 'Barni Se Azadi' featuring 79 Nukkad Natak performances across seven major cities. The street plays were conducted in Mumbai, Delhi, Indore, Surat, Lucknow, Baroda, and Jaipur, beginning in December 2025.
| Campaign Details | Specifications |
|---|---|
| Total Performances | 79 street plays |
| Cities Covered | 7 cities |
| Venues | Markets, residential areas, community hubs |
| Target Audience | Individuals, particularly women |
The performances addressed key financial topics including savings, investing, financial independence, and systematic investment plan benefits. The initiative emphasized disciplined investing, long-term wealth creation strategies, and reduced market timing dependence. "Financial awareness has the power to change not just individual lives, but entire communities," stated Navneet Munot, Managing Director and Chief Executive Officer of HDFC Asset Management Company.
Franklin Templeton's Pan-India Campaign
Franklin Templeton India launched its comprehensive investor education initiative 'Change the Soch – Kanyakumari to Kashmir Drive' to commemorate 30 years of operations in India. The campaign features a 30-day road journey covering over 4,000 km, starting from Kanyakumari and concluding in Srinagar, Jammu & Kashmir.
| Journey Parameters | Details |
|---|---|
| Duration | 30 days |
| Distance | Over 4,000 km |
| Cities Covered | 21 cities |
| Route | Kanyakumari to Srinagar |
Avinash Satwalekar, President of Franklin Templeton India, is conducting interactive investor education sessions with diverse participant groups including farmers, self-help groups, students, educators, entrepreneurs, government employees, private sector workers, and defence personnel. The sessions emphasize basic financial planning concepts, investment transition strategies, and long-term wealth building through mutual funds, with particular focus on women's financial empowerment.
SIP Growth and Geographic Expansion
Systematic Investment Plans have emerged as a primary growth driver for the industry. SIP assets reached Rs 16.63 lakh crore as of December 2025, representing 20.70% of the industry's total AUM. The geographic distribution of investments has also evolved significantly, with participation from smaller towns showing steady increase.
| SIP Metrics | December 2025 |
|---|---|
| SIP Assets | Rs 16.63 lakh crore |
| Share of Total AUM | 20.7% |
| B30 Location Assets | Over 27% (November 2025) |
Participation from B30 locations has grown substantially, with over 27.00% of retail mutual fund assets originating from these smaller towns in November 2025. This trend indicates successful penetration beyond traditional urban investment centers.
Industry Infrastructure Development
The Association of Mutual Funds in India (AMFI) has completed the first phase of its collaboration with India Post, training and onboarding postmen as mutual fund distributors. This initiative leverages the postal network's extensive reach in rural and semi-urban areas while addressing access and Know Your Customer facilitation challenges.
AMFI has identified Bihar, Andhra Pradesh, Odisha, and Meghalaya as focus states for intensive distributor training programs. AMFI chairperson Venkat Chalasani emphasized that financial penetration in India remains limited, necessitating district-by-district expansion efforts to broaden investor participation. These infrastructure developments support the industry's objective of democratizing investment access across India's diverse geographic and demographic landscape.
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