Investor Base Expands: Mutual Funds Add About 64 Lakh New Investors in 2025

The Indian mutual fund industry closed December 2025 on a strong footing, even as the year tested investor nerves. With markets navigating a “roller coaster” of global events such as trade-war related headlines, the industry still managed to widen its investor base meaningfully and retain momentum in assets.

For the month of December 2025, the Average Assets Under Management (AAUM) of the Indian mutual fund industry stood at ₹81,99,191 crore. Meanwhile, the Assets Under Management (AUM) as on December 31, 2025 were ₹ 80,23,379 crore.

While AUM reflects the industry’s asset base at a point in time, AAUM provides a more representative picture of average money managed during the month. Taken together, the numbers underline the scale at which the industry now operates.

Investor Base: Strong Expansion Despite a Volatile Year

CY2025 was not an easy year to stay invested with conviction. Yet, the mutual fund industry ended the year by expanding its investor footprint. The total number of mutual fund investors increased from 5.25 crore in December 2024 to 5.90 crore in December 2025, translating into a growth of about 12.4% in just one year.

In absolute terms, the mutual fund industry added an impressive about 64 lakh new investors during CY2025.

What the Investor Table Tells Us

The investor mix is best understood through the split between PAN-based investors and those who fall under PAN-exempt categories.

1) Unique PANs: The real engine of growth

In terms of unique investors with PAN, the industry added 63.98 lakh investors in 2025. This is the clearest marker of expanding participation, especially from fully KYC-compliant investors who typically engage across multiple schemes and channels over time.

2) PEKRN: A decline driven by KYC changes

The PAN-exempt category (PEKRN) declined from 3.45 lakh in December 2024 to 3.23 lakh in December 2025. This fall can be largely attributed to the implementation of new KYC norms, which tends to reduce participation in exempt categories as compliance requirements tighten.

3) Net result: 63.76 lakh investors added

Combining both segments, the industry added 63.76 lakh investors in CY2025, aligning with the broader estimate of roughly 64 lakh new investors added during the year.

New Investor Additions by Year by Year by MF Industry: Reading the Trend

While 2025 saw healthy net additions, the pace clearly moderated when compared to the previous year. 

Here’s the year-wise picture of new investor additions alongside Nifty 50 performance.

What stands out in the table

• 2024 was the outlier year for investor additions, with over one crore new investors added, despite Nifty 50 performance being 9%, which is comparable to 10% in 2025.
• 2025 additions fell sharply versus 2024, with the number of new investors added declining by nearly 40%.
• In CY2023, Nifty 50 index delivered 19% returns, investor additions (53.87 lakh) were lower than both CY2022 (60.55 lakh) and CY2025 (63.77 lakh).

Why Did New Investor Growth Slow in 2025?

Despite the strong headline addition of ~64 lakh new investors, the pace slowed versus 2024. 

The decline in new investor additions could also be linked to a slowdown in New Fund Offers (NFOs). NFOs often act as a high-visibility entry point for first-time investors, aided by heightened distributor activity and marketing. When the pipeline of NFOs slows, investor acquisition can moderate even if markets remain reasonably supportive.

Conclusion

CY2025 reinforced an important reality: the mutual fund industry’s investor base is expanding steadily, even through uncertainty. With AAUM at ₹ 81,99,191 crore, AUM at ₹ 80,23,379 crore, and around 64 lakh new investors added, the industry ended the year larger and more widely owned.