SBI MF Hits Record Rs 10.99 Lakh Cr AAUM In Q2FY25

SBI Mutual Fund, India’s largest asset management company (AMC), reached a milestone with an average asset under management (AAUM) of Rs 10.99 lakh crore in the September quarter (Q2 FY25), data from the Association of Mutual Funds in India (AMFI) shows. The fund house, which closed FY24 with an AAUM of Rs 9.14 lakh crore, was the first in the Indian mutual fund industry to surpass the Rs 10 lakh crore AAUM threshold in June 2024. 

Between FY19 and FY24, SBI Mutual Fund recorded a compound annual growth rate (CAGR) of roughly 26 per cent, driven by a steadily growing Systematic Investment Plan (SIP) base.

As of June 2024, SBI Mutual Fund’s assets were significantly higher than its closest competitors, with ICICI Mutual Fund and HDFC Mutual Fund registering AAUMs of Rs 8.41 lakh crore and Rs 7.59 lakh crore, respectively.

In recent years, mutual funds have gained traction as a popular investment choice among Indian retail investors, thanks to India’s expanding economy and strong financial markets. This upward trend in retail inflows has been ongoing since 2020, with millennials, in particular, embracing the stock market at a faster pace than previous generations.

While many investors prefer direct investments via demat accounts, SIPs remain a preferred choice for disciplined investment, benefiting from rupee cost averaging.

As of the latest AMFI data, the Indian mutual fund industry reported an impressive 9.87 crore SIP accounts. The industry's AUM stood at Rs 68 lakh crore on average as of September 2024, with a total AUM of Rs 67.09 lakh crore by the end of that month.

The mutual fund sector has experienced significant growth, with assets under management increasing from Rs 9.59 trillion in September 2014 to Rs 67.09 trillion in September 2024—an approximately sevenfold rise over the past decade. 

Key milestones in this upward trend include the Rs 10 lakh crore AUM mark in May 2014, Rs 20 lakh crore in August 2017, and Rs 30 lakh crore in November 2020, reflecting the sector’s robust growth trajectory as of September 2024, per AMFI data.