MUTUAL FUND News
Why children’s mutual funds are gaining popularity among Indian households
Children’s mutual funds, once a niche investment option, are increasingly becoming a mainstream tool for long-term financial planning in Indian households, especially for education-related goals. Data from ICRA Analytics shows that assets under management (AUM) in children’s funds have surged by nearly 160 per cent over the past five years, rising to Rs. 25,675 crore in November 2025 from Rs. 9,866 crore in November 2020. This sharp growth reflects changing investor behaviour as families seek solutions that can keep pace with rapidly rising education costs.
Private school fees are increasing at an annual rate of 11–12 per cent, while higher education inflation has exceeded general inflation for over a decade. Traditional instruments such as fixed deposits and recurring deposits are increasingly seen as inadequate to meet these long-term costs. In contrast, market-linked children’s funds have delivered stronger returns, with top-performing schemes generating 20–30 per cent CAGR over the last three to five years.
According to ICRA Analytics, around a dozen such funds are currently available, with several delivering average returns of 15–20 per cent in recent years. This has encouraged parents to shift from conventional savings to equity-oriented, goal-based investment strategies for their children’s future milestones.
SEBI eases re-KYC norms for NRIs to simplify compliance
Markets regulator Securities and Exchange Board of India has eased the re-KYC process for Non-Resident Indians (NRIs) by removing the requirement of physical presence in India during digital verification. The move, announced on December 10, 2025, is aimed at making compliance simpler and more accessible for overseas investors.
SEBI said the decision follows representations from multiple stakeholders highlighting operational difficulties faced by NRIs under the existing framework. Under the revised norms, NRIs can now complete re-KYC digitally from their country of residence, provided robust verification safeguards are in place. These include randomised prompts, time-stamping and geo-tagging to ensure the authenticity of the interaction.
Re-KYC involves updating or revalidating customer information with regulated entities such as brokers, mutual funds and portfolio managers. While the physical location requirement has been relaxed, SEBI has clarified that intermediaries must continue to maintain strong audit trails and fraud-prevention checks.
The move is expected to improve ease of doing business, reduce account disruptions for overseas investors and support higher participation by NRIs in Indian capital markets. It also aligns with SEBI’s broader push towards digitisation and investor convenience without compromising regulatory oversight.
Mutual fund AUM in India may cross Rs. 300 trillion by FY35
India’s mutual fund industry continues its rapid expansion, with assets under management (AUM) crossing Rs. 81 trillion in November 2025, up from Rs. 68 trillion a year earlier. According to ICRA Analytics, this represents a year-on-year growth of 18.69 per cent and a five-year CAGR of nearly 22 per cent. Market participants now believe the industry could cross Rs. 100 trillion within the next few years and exceed Rs. 300 trillion by FY35.
The growth has been driven by sustained net inflows, strong equity market performance and deeper retail participation across the country. Digital onboarding, SIP-based investing and rising financial awareness among Gen Z, women investors and households in smaller towns have played a significant role in broadening the investor base.
Industry data shows that AUM has nearly tripled over the past five years, reflecting a structural shift in household savings away from physical assets and low-yield deposits towards financial instruments. Despite global economic uncertainties, domestic participation has remained resilient.
ICRA Analytics noted that long-term investing behaviour, supported by systematic investment plans and growing confidence in capital markets, is likely to remain the key driver of growth over the next decade, positioning mutual funds as a core savings vehicle for Indian households.
Gold and silver ETFs push passive fund share to record high
Passive funds have regained momentum in 2025, with their share in the overall mutual fund industry reaching a record high, driven largely by strong inflows into gold and silver exchange-traded funds (ETFs). As of November 2025, passive funds accounted for 17.4 per cent of total mutual fund assets under management, up from 16.6 per cent at the end of December 2024.
The renewed interest follows a temporary slowdown in 2024, when active equity schemes—particularly small-cap, mid-cap and thematic funds—attracted the bulk of investor inflows amid strong risk appetite. In 2025, heightened volatility, geopolitical uncertainty and rising interest in inflation hedges have shifted investor focus back to commodities-linked passive products.
Gold and silver ETFs have benefited from strong price movements and their role as portfolio diversifiers, attracting both retail and institutional investors. Passive funds also appeal due to lower expense ratios, transparency and predictable tracking of underlying indices or commodities.
Industry participants note that the rising share of passive funds reflects a maturing investor base that increasingly values cost efficiency and asset allocation discipline. The trend is expected to continue as more investors adopt diversified, long-term portfolio strategies combining active and passive investment approaches.
Equity mutual fund assets cross Rs. 50 trillion milestone
Equity assets under management (AUM) of mutual funds in India have crossed the Rs. 50 trillion mark for the first time, reflecting the growing role of mutual funds as the preferred vehicle for equity market participation. As of end-October 2025, equity AUM stood at Rs. 50.6 trillion, more than doubling in just over two years, supported by steady inflows and a buoyant equity market environment.
This milestone highlights the deepening of equity ownership among retail investors, aided by a sustained rise in the investor base and the increasing reliability of systematic investment plans (SIPs). SIPs have continued to provide stability to equity inflows even during periods of market volatility, reinforcing investor confidence in long-term investing.
Industry participants note that equity mutual funds are increasingly viewed not just as return-generating instruments but also as disciplined wealth-building tools. Greater digital access, simplified onboarding processes and widespread investor awareness campaigns have further strengthened participation across geographies, including smaller towns.
The sharp expansion in equity AUM also reflects a structural shift in household savings away from traditional assets towards market-linked instruments. With equity markets remaining resilient and investor participation broad-based, mutual funds are expected to retain their central role in India’s capital market ecosystem.
$20 billion in IPOs annually is India’s new normal: JP Morgan
Initial public offerings worth about $20 billion annually are set to become the “new normal” for India, according to global investment bank JP Morgan. The Indian primary market has already seen $21 billion worth of IPO issuances in 2025, matching last year’s total, and is expected to close the year with over $23 billion in listings.
Abhinav Bharti, head of equity capital markets at JP Morgan, said India has reached a new watermark in terms of annual issuance volumes, which is likely to become a sustained run rate over the coming years. Large upcoming issues, including a Rs. 10,000 crore offering from ICICI Prudential AMC, are expected to support this trend.
Nearly one-fifth of IPO demand is currently driven by consumer technology and new-age businesses, a share that could exceed 30 per cent over the next five years. Bharti noted that at least 20 startups with valuations in the hundreds of millions of dollars are preparing to go public, with four to five large companies planning billion-dollar-plus issuances.
He added that private equity exits and improved valuation discipline have strengthened the IPO pipeline, making high issuance volumes structurally sustainable.
Sebi orders seizure of Rs. 546 crore in major action against finfluencer
In one of its strongest actions against a stock market influencer, Securities and Exchange Board of India has ordered the impounding of Rs. 546.2 crore from Avadhut Sathe Trading Academy and Avadhut Sathe. The regulator has also barred the entities from accessing the securities market and directed them to stop offering unregistered investment advisory and research analyst services.
Sebi said the entities had collected over Rs. 601 crore from nearly 3.4 lakh investors while misleading them with unrealistic return claims. According to the 125-page order, the entities operated under the guise of stock market education but were effectively providing unregistered advisory services using live market trading during training sessions.
The regulator found that misleading advertisements and selective disclosure of profitable trades were used to induce investors, while an analysis of actual trading data showed that trainers and participants were, in fact, incurring net losses. Sebi had issued a warning to the entities in March 2024, cautioning against misrepresentation, but the practices continued.
Sebi clarified that any educational activity must strictly comply with securities laws. The order signals tighter scrutiny of finfluencers and reinforces the regulator’s stance on investor protection and market integrity.
Sebi proposes simpler process for duplicate share certificates
Markets regulator Securities and Exchange Board of India has proposed a simplified and cost-effective process for investors seeking duplicate copies of lost securities such as shares, bonds and mutual fund units. The move aims to reduce procedural hurdles and standardise documentation across listed companies and registrars.
Under the proposal, Sebi plans to introduce a uniform set of forms and double the threshold for issuing duplicate securities without requiring an FIR or newspaper advertisement to Rs. 10 lakh, from the current Rs. 5 lakh. The regulator has also suggested replacing the separate affidavit and indemnity bond requirement with a single affidavit-cum-indemnity bond.
At present, investors must follow a multi-step process involving police complaints, newspaper advertisements and multiple legal documents, which Sebi noted has caused significant inconvenience due to varying practices across registrars and companies. The proposed framework draws on the streamlined process followed by the Investor Education and Protection Fund Authority for reclaiming unclaimed securities.
By reducing documentation and simplifying compliance, Sebi aims to improve investor experience and ensure faster resolution of such cases. The proposal reflects the regulator’s broader push towards ease of doing business and stronger investor-centric reforms in the securities market.
Over Rs. 1 trillion in unclaimed deposits: How to trace and recover your money
Prime Minister Narendra Modi has urged citizens to check for unclaimed money lying with banks, insurance companies, mutual funds and listed companies, and reclaim what is “rightfully theirs”. According to government data highlighted by the Prime Minister, more than Rs. 1.84 trillion of household savings remain unclaimed across the financial system, with a significant share parked in bank deposits, insurance policies and investment products.
To address this, the government has launched a nationwide initiative titled Your Money, Your Right, aimed at returning idle funds to their rightful owners. Large sums remain unclaimed due to forgotten bank accounts, incomplete KYC details, the death of the primary account holder, or lack of awareness among nominees and legal heirs.
Under the initiative, individuals are encouraged to proactively check for dormant accounts and unclaimed assets using dedicated portals and bank channels. Authorities have also stepped up public awareness campaigns and simplified claim processes to ease recovery. The government has emphasised that reclaiming these funds not only benefits households but also improves transparency and efficiency in the financial system.
Mutual fund assets cross Rs. 80 lakh crore for the first time; SIP inflows dip marginally
India’s mutual fund industry crossed a major milestone in November, with total assets under management (AUM) surpassing Rs. 80 lakh crore for the first time, supported by strong inflows into equity, hybrid and index schemes. Industry AUM rose to Rs. 80.8 lakh crore at end-November, up from Rs. 79.9 lakh crore a month earlier, according to data released by Association of Mutual Funds in India.
Systematic investment plan (SIP) inflows saw a marginal decline to Rs. 29,445 crore in November from Rs. 29,529 crore in October. Industry participants attributed the dip to timing factors, as the last two days of the month fell on a weekend. Despite this, cumulative SIP assets climbed to Rs. 16.5 lakh crore, now accounting for over 20 per cent of total industry AUM.
Debt schemes witnessed net outflows of nearly Rs. 25,700 crore, largely driven by withdrawals from overnight and liquid funds. Fund managers noted a rotation towards slightly longer-duration debt categories, while overall investor confidence in mutual funds remained steady.
HDFC Mutual Fund reshuffles fund managers for three equity schemes
HDFC Mutual Fund has announced changes in fund management across three of its equity schemes following the exit of Roshi Jain, with the revisions effective from December 8, 2025. The fund house informed unitholders through a notice-cum-addendum.
Under the new arrangement, HDFC Flexi Cap Fund will be managed by Chirag Setalvad, HDFC Focused Fund by Gopal Agrawal, and HDFC ELSS Tax Saver Fund by Amar Kalkundrikar. Dhruv Muchhal will continue as the dedicated fund manager for overseas investments across all three schemes. All other terms and conditions of the schemes remain unchanged.
Roshi Jain, who joined HDFC Mutual Fund in December 2021, had taken charge of the Flexi Cap Fund in 2022 following the exit of veteran fund manager Prashant Jain. She previously worked with Franklin Templeton, Goldman Sachs and Wipro Ltd., and is a CFA charterholder and alumna of IIM Ahmedabad.
HDFC Flexi Cap Fund is the second-largest flexi-cap scheme in the category, with assets under management exceeding Rs. 94,000 crore, making the transition closely watched by investors.
Tata AIA Life Insurance launches multicap opportunities funds
Tata AIA Life Insurance has launched the Tata AIA Multicap Opportunities Fund and the Tata AIA Multicap Opportunities Pension Fund, offering investors a diversified equity strategy linked to the Nifty 500 Index. The funds aim to provide broad exposure across large-, mid- and small-cap stocks, reflecting India’s increasingly broad-based growth.
Both schemes will be available at an initial price of Rs. 10 per unit during the new fund offer (NFO) period from December 24 to December 31, 2025. According to the company, the funds are designed to help investors navigate volatile markets marked by global uncertainties and sectoral fluctuations through diversification.
The insurer said that spreading investments across sectors, company sizes and themes can help balance risk and return over the long term. India’s growth trajectory now spans traditional industries as well as emerging technologies, making a multicap approach relevant for capturing opportunities across market cycles.
By anchoring the strategy to a wide market index, the funds seek to reduce concentration risk while allowing participation in long-term wealth creation across multiple segments of the economy.
Sebi lowers mutual fund fee cap, set to reduce costs for investors
Mutual fund investors are set to benefit from lower costs after markets regulator Securities and Exchange Board of India (Sebi) reduced the maximum fee that fund houses can charge in select mutual fund schemes. The regulator has cut the fee cap by up to 15 basis points, a move expected to directly lower the expense burden on investors over the long term.
In addition, Sebi has reduced the maximum brokerage that mutual fund houses can pay to brokers for transactions across equity, futures and options, and debt markets. Industry participants believe this measure could further compress operating costs for asset management companies, with potential spillover benefits for investors through lower total expenses.
However, Sebi clarified that statutory charges such as GST, exchange fees and securities transaction tax (STT) will now be levied separately and will no longer be included within the fee charged to investors. Earlier, these statutory levies formed part of the overall expense ratio borne by investors.
The Sebi board also approved a series of broader regulatory changes for stock brokers and mutual funds. According to the regulator, these updates aim to streamline regulations, remove redundant provisions, improve clarity, and align compliance requirements with evolving market practices, thereby enhancing ease of doing business while safeguarding investor interests.
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