It grew at a rapid pace between 2014 and 2018 during which period the AUM of the mutual fund industry went up from Rs.8 trillion to Rs.24 trillion. However, in the last one year the growth has slowed. The volatility in the market has slowed funds into equities while the flows into debt funds are largely negative in most months as investors are pulling money out of credit risk funds after the IL&FS issue.

If you look at in dollar terms, the AUM has hardly grown in the last 18 months and is static around the range of $300 to $350 billion. Also, one must remember that even at $300 billion the entire mutual fund AUM is much smaller than the AUM of individual global mutual funds. For example in the US a single large passive fund house like Blackrock manages nearly $7 trillion and the second largest fund house, Vanguard manages nearly $5 trillion of assets. So the AUM of the largest fund in the world is more than 20 times the AUM of the mutual fund industry overall in India. In terms of size Indian mutual fund industry still has a long way to go.