Mumbai: Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Friday called on the mutual fund industry to put investor outcomes at the centre of its next phase of growth as rising assets, expanding participation and rapid technological adoption increase the sector’s scale and complexity.
Addressing the mutual fund industry at the Association of Mutual Funds in India (AMFI)’s 31st Foundation Day, Pandey said mutual funds have played a significant role in transforming India’s capital markets and expanding participation among retail investors.
The industry’s assets under management (AUM) have grown sharply from around Rs 15 lakh crore in July 2016 to about Rs 86 lakh crore in July 2026, registering a compound annual growth rate of around 19 per cent.
However, Pandey cautioned that the industry’s success should not be judged merely by the growth in AUM, folios or the number of schemes.
“Success cannot be measured only by AUM, number of folios or schemes; it must ultimately be measured by investor outcomes,” he said, adding that investor outcomes should define the industry’s next phase of development.
India now has more than 14 crore unique capital market investors, while monthly systematic investment plan (SIP) contributions stood at around Rs 32,000 crore in July. The number of unique mutual fund investors has also crossed the 6-crore mark.
Pandey urged the industry to broaden its investor base and set an ambitious target of doubling the number of mutual fund investors to around 12 crore over the next few years. He said the industry should work backwards from this objective and identify the measures needed to strengthen distribution networks and investor awareness.
While mutual funds have expanded their reach to almost every pin code in the country, Pandey said investor education must become more multilingual, multi-agency and multi-media. Communication should also be customised to meet the needs of different categories of investors.
Highlighting the growing participation of women, he said women now account for 34 per cent of individual investor AUM, describing their growth in the market as particularly strong.
Pandey also cited the findings of the SEBI Investors Survey 2025, under which 22 per cent of Indian households indicated that they intended to enter the capital markets over the following 12 months.
(IANS)
