Fintech-Led Asset Managers Gain Momentum in India's Mutual Fund Market
India's mutual fund industry is witnessing a notable shift as fintech-backed asset management companies (AMCs) continue to expand their presence at a rapid pace. Fund houses backed by investment platforms Groww and Zerodha have reported exceptional growth in assets under management (AUM), significantly outperforming the broader industry's growth rate over the past year.
The strong growth highlights the increasing influence of digital investment platforms, which are leveraging their large user bases to attract first-time investors and encourage long-term wealth creation through mutual funds.
Groww AMC Records Nearly Threefold Growth
Groww Asset Management Company witnessed a sharp increase in its AUM, which rose from approximately ₹1,660 crore in April 2025 to ₹4,730 crore in April 2026. This represents nearly a threefold increase within a year. The company's digital-first approach, combined with the popularity of direct mutual fund offerings, has helped accelerate investor adoption.
The growth builds on the momentum generated following Groww's acquisition and expansion of its mutual fund business, allowing the platform to strengthen its presence across passive and index-based investment products.
Zerodha Fund House Continues Strong Expansion
Zerodha Fund House also delivered impressive growth, with its AUM increasing from around ₹4,934 crore in April 2025 to ₹13,133 crore in April 2026. The company has focused primarily on low-cost passive investing solutions, including index funds and ETFs, which have resonated with cost-conscious investors seeking long-term wealth creation opportunities.
Its technology-driven investment ecosystem and large brokerage customer base have played a key role in driving fund inflows and expanding investor participation.
Digital Platforms Reshape Investor Participation
Fintech platforms such as Groww, Zerodha, Angel One, Paytm Money, and PhonePe have emerged as major contributors to new SIP registrations and retail participation in financial markets. Their simplified onboarding processes, intuitive user interfaces, and investor education initiatives are helping bring a new generation of investors into the mutual fund ecosystem.
Industry experts believe that as digital adoption increases, fintech-backed AMCs could continue gaining market share, particularly in the passive investing segment.
Outlook
While traditional asset managers continue to dominate the industry in terms of overall assets, fintech-led fund houses are demonstrating that technology, customer trust, and accessibility can be powerful growth drivers. If current trends persist, digital-first AMCs are expected to play an increasingly important role in shaping the future of India's investment landscape.
FAQs
- What is AUM in mutual funds?
Assets Under Management (AUM) refers to the total market value of investments managed by a mutual fund or asset management company.
- How much did Groww AMC's AUM grow in one year?
Groww AMC's AUM increased from ₹1,660 crore in April 2025 to ₹4,730 crore in April 2026, representing nearly threefold growth.
- What was Zerodha Fund House's AUM in April 2026?
Zerodha Fund House reported AUM of approximately ₹13,133 crore in April 2026.
- Why are fintech-backed AMCs growing rapidly?
Their digital-first approach, easy onboarding, lower distribution costs, and strong retail investor engagement have helped attract new investors.
- Which investment products are driving growth?
Passive investment products such as index funds and ETFs are among the primary growth drivers for fintech-led AMCs.