Indian Mutual Fund Sectoral Shift – December 2025 AUM Analysis

How The MF Sectoral Mix Changed In December 2025

As of the close of December 2025, Indian mutual funds reported total equity AUM of ₹51.08 Trillion. This includes the active equity fund AUM plus the AUM of the equity component of hybrid funds and index funds. Here we look at how the sectoral mix of mutual funds changed in December 2025, compared to December 2024. We look at it in terms of the Rupee change in AUM as well as the Percentage change in AUM. While the former is a more material measure from investor significance, the latter is fair to small sectors too. To get a more balanced view we rank various sectoral changes of MFs on rupee and percentage terms and rank on the average, which is presented below.

Data Source: AMFI, MF Monthly Factsheets (AUM data ₹ in Crore)

What Are The 3 Segments In The December MF Sectoral Shift

• The top segment (orange shade) are the sectors that have seen accretion in rupee terms and in percentage terms and are among the most preferred sectors.

• The second segment (purple shade) are the sectors that have managed to show strength only on one of the factors; and mostly it is the percentage growth factor.

• The last segment (brown shade) are the sectors that are facing some challenges and FMCG, pharma, and capital goods are perfect examples of sectors in turmoil.

Our Story On Some Of The Key Sectoral Exposures In December 2025

Having seen the top-15 sectors on average rank across rupee change and percentage change in MF sectoral AUM, here is the granular sectoral story.

• BFSI has been the big story and has seen consistent mutual fund buying interest; largely due to the domestic colour of the business. NBFCs have contributed too.

• Retail has been largely a digital play. More than traditional retail, this growth is driven by Zomato, Swiggy, and recently listed names like Lenskart and Meesho.

• Telecom and autos are news and regulation driven; with factors like ARPUs, AGR waiver for VI, GST cuts on auto, festival boost, lower interest rates etc.

• Then, there are the stocks that have dominated largely on percentage gain on market buying; which includes sectors like Metals, Aviation, Jewellery, Chemicals etc.

• Which heavyweight sectors are absent in the top-15. The obvious sector is IT Services, where weak tech spending and visa concerns have subdued performance.

• In the top-15, there are some sectors that have seen a deterioration in their performance. FMCG is an obvious case due to weak urban demand, pharma due to likely US export restrictions, and power sector due to weak demand post summer.

It is interesting to note that the fourth most preferred sector for mutual funds in terms AUM is healthcare; after BFSI, autos, and IT Services. Even for the mutual funds, the focus in the last few months has been more towards the domestic demand plays!