BFSI Sector Sees 37% Growth in Mutual Funds

Investment in banking and financial services mutual funds surged by 37% year-on-year to reach Rs 48,000 crore in May 2025, according to industry data. This significant increase in assets is driven by the robust performance of the sector, which has delivered impressive returns ranging from 22% to 30% over the past year.

The BFSI sector, characterized by its resilient fundamentals, has continued to draw investor interest despite market fluctuations. Currently, 22 mutual funds in the Indian market manage a combined AUM of Rs 48,000 crore, significantly up from Rs 34,971 crore in May 2024. The BSE financial services index gained nearly 14% in the first quarter, alongside a 10% rise in BSE Bankex.

A wave of new entrants in insurance, fintech, wealth management, and digital lending is expected to further broaden the investment landscape. The sector is no longer just about traditional banking, it represents participation in India's digital financial revolution. With the ongoing formalization of the economy, this space holds long-term potential for wealth-building opportunities.

(With inputs from agencies.)