Archive · 12 Dec 2025
India's Mutual Fund Growth Surges
India's investment habits are changing a lot.
More people are putting their money into mutual funds and direct equities instead of traditional savings like deposits.
This is because there are more digital platforms making it easier to invest, and people are learning more about the market.
The report says that in the next 10 years, mutual funds could grow to ₹300 lakh crore, and direct equity holdings could reach ₹250 lakh crore.
Right now, mutual funds and equities make up only 15-20% of household investments, but this is expected to grow.
The report also mentions that younger investors are more active in the market, and there's a shift from short-term trading to long-term investing.
This is all good news for the future of investing in India.
Mutual fund AUM in India is projected to exceed ₹300 lakh crore in the next 10 years.
Direct equity holdings are expected to reach ₹250 lakh crore in the same period.
Household wealth in India has grown to ₹1,300-1,400 lakh crore, with mutual fund AUM reaching ₹41 lakh crore by FY25.
Digital platforms account for 80% of direct equity investors and 35% of mutual fund investors.
Household penetration of mutual funds has increased from 5–6% to 10–11% over the last five years.
- Who
- Indian households, investors, mutual funds, direct equity holders
- What
- Growth in mutual fund and direct equity investments
- When
- Projected over the next 10 years, with current data up to FY25
- Where
- India, with focus on B30 cities
- Why
- Increasing financial literacy, digital platforms, regulatory support, and market performance
- Projected Mutual Fund AUM
- ₹300 lakh crore in 10 years
- Current Household Wealth
- ₹1,300-1,400 lakh crore
- Mutual Fund AUM Growth
- ₹41 lakh crore (FY25)
- Household Penetration
- 10–11% (up from 5–6%)
- Direct Equity Holdings
- ₹42 lakh crore (FY25)
- Projected Direct Equity Holdings
- ₹250 lakh crore in 10 years
- Digital Platform Investors
- 80% of direct equity, 35% of mutual fund investors
- Dematerialized Accounts Growth
- 5x in the last five years
Sources
Passive funds are powering ahead, but retail investors are still in the backseat
Equity mutual fund inflows rise in November as AUM grows on strong market sentiment
Investments trends shift from deposits to markets. Here's where Indians put their money in 2025
SIP inflows dip marginally to Rs 29,445 cr in November
Why PPFAS thinks large-cap active investing can still work
