1 week ago
Indian Households Shift Savings Toward Mutual Funds and Equity
Indian families are changing how they save and invest their money.
Bank deposits are still the biggest single place for household savings.
However, mutual funds are becoming much more popular.
Money invested in mutual funds rose from ₹1.8 lakh crore in FY2023 to ₹4.7 lakh crore in FY2025.
Investments in equity also grew, but they remain smaller than other categories.
Provident and pension funds grew steadily during the same period.
Life insurance and small-savings inflows fell in FY2025.
This means families are not abandoning traditional savings, but are adding more market-linked investments.
Mutual fund inflows more than doubled from ₹1.8 lakh crore in FY2023 to ₹4.7 lakh crore in FY2025.
Equity inflows more than tripled over the period, rising from ₹0.2 lakh crore to ₹0.7 lakh crore.
Deposits remained the largest savings avenue, although inflows eased from ₹13.8 lakh crore in FY2024 to ₹12.5 lakh crore in FY2025.
Provident and pension fund inflows, including PPF, rose steadily from ₹6.2 lakh crore to ₹7.9 lakh crore.
Life insurance and small-savings inflows declined in FY2025 after increasing in FY2024.
- Who
- Indian households and savers.
- What
- Household savings are shifting partly toward mutual funds and equity, while deposits remain the largest individual avenue.
- Where
- India.
- When
- The data covers FY2023 through FY2025.
- Why
- The data indicates a changing mix of household financial savings, with stronger growth in market-linked assets and weaker recent flows into life insurance and small savings.
Key facts
- Data period
- FY2023 to FY2025
- Source
- Abakkus Asset Manager IPO DRHP
- Mutual fund inflows
- Rose from ₹1.8 lakh crore in FY2023 to ₹4.7 lakh crore in FY2025
- Equity inflows
- Rose from ₹0.2 lakh crore in FY2023 to ₹0.7 lakh crore in FY2025
- Largest avenue
- Deposits, with ₹12.5 lakh crore of inflows in FY2025
- Provident and pension funds
- Including PPF, inflows increased from ₹6.2 lakh crore to ₹7.9 lakh crore
- Life insurance inflows
- Declined from ₹6.5 lakh crore in FY2024 to ₹5.3 lakh crore in FY2025
Sources
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