India's AUM Grows 17% in 2025, Outpacing Asia-Pacific Average

Global assets under management crossed $147 trillion in 2025, up 11 per cent year-on-year, driven predominantly by market performance, the report from BCG said.

In the Asia-Pacific, retail business grew at 15 per cent, outpacing institutional growth of 9 per cent, reflecting a structural shift in how individuals engage with financial markets.

Retail products already account for 61 per cent of total Indian AUM, making India one of the most retail-dominated markets in the region, the firm said.

Meanwhile, institutional business - led by pensions account for 58 per cent of the segment and grew 23 per cent, signalling deepening participation across investor categories.

"With growing GDP, continued financialisation of assets and increasing awareness, India's asset management industry now has strong retail participation - already accounting for over 60 per cent of the market," said Mayank Jha, MD & Partner and Leader, Asset & Wealth Management - Asia Pacific, BCG.

"However, opportunity alone will not translate into growth. Advantage will come from distribution. Firms that capture this moment will be those that build scalable, tech-enabled distribution, with continued trust in the brand for delivering consistent performance, localise their products and approach for deepening India's retail-led market, and invest in digital and data capabilities to reach distributors and investors at scale," he added.

Retail investors are the primary driver of AUM growth globally, accounting for 61 per cent of global expansion between 2020 and 2025. Retirement systems are increasingly redirecting flows as defined contribution plans expand and defined benefit pools mature, the report noted.

Growth is also becoming more dispersed geographically, with Asia-Pacific posting the fastest gains at 9 per cent annually over the same period, supported by strong net inflows.

Global AuM has more than tripled and revenue more than doubled over the past 15 years but industry profit margins remain close to 30 per cent, roughly where they stood in 2010.

- IANS