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.