Archive · 29 Jul 2025
Retirement Mutual Funds AUM Surge in India
More people in India are choosing mutual funds for retirement.
The amount of money in these funds has grown a lot in the last five years, increasing by 226%.
This growth is due to funds becoming more trustworthy, with better rules and transparency.
They offer a mix of stocks for growth and bonds for stability.
Investor-friendly platforms have also made investing easier.
While these funds can help you save, they are not risk-free, so you should make sure to pick funds that match your age and goals.
Retirement mutual funds' AUM grew 226% in 5 years, reaching ₹31,973 crore.
Total folios under retirement schemes increased by over 18% to 30.09 lakh.
Average returns were 6.79%, 15.72%, and 14.64% for 1-year, 3-year, and 5-year periods.
ICICI Prudential Retirement Fund - Pure Equity Plan showed the highest 5-year return at 30.32%.
Factors include investor trust, transparency, and retirement planning awareness.
- Who
- ICRA Analytics.
- What
- Growth of retirement mutual funds in India.
- When
- Data reported through June 2025 and March 31, 2025.
- Where
- India
- Why
- Increased investor confidence, financial planning awareness, and better accessibility.
Investors
Financial Planners
Benefits
Investors
Benefit from the long-term wealth creation.
Financial Planners
N/A
- Research Firm
- ICRA Analytics
- Main Topic
- Retirement Mutual Funds
- AUM June 2020
- ₹9,800 crore
- AUM June 2025
- ₹31,973 crore
- AUM Growth (5 years)
- 226%
- Folios June 2020
- 25.46 lakh
- Folios June 2025
- 30.09 lakh
- Average Returns (5 years)
- 14.64%
Sources
Transparency, investor protection boost confidence in MF as retirement vehicle: ICRA Analytics
Transparency, investor protection boost confidence in Mutual Funds as retirement vehicle: ICRA
Retirement Planning On Rise: More Indians Turn To Mutual Funds For Secure Future - ICRA
226% rise in retirement MFs’ AUM in 5 yrs: Report
