Archive · 27 Jan 2026
Indian Households Prefer Mutual Funds for Equity Investments
Indian households have been investing in the stock market, but in 2025, they bought fewer shares directly.
Instead, they put more money into mutual funds, which then invest in the stock market.
This shows that people still believe in the stock market for long-term savings.
Over the past six years, households have invested a lot of money, and even though there were some ups and downs, the total value of their investments is much higher than it was a few years ago.
This means that the stock market is playing a bigger role in how people save and build wealth in India.
Direct equity buying by individual investors moderated in 2025 after record inflows in 2024.
Households continued to invest in equities through mutual funds, reflecting sustained confidence in long-term wealth creation.
Cumulative net investments by individuals over the past six years remained strong at ₹4.5 lakh crore.
Individuals held 18.75% of listed equities, the highest share in over two decades, with a total value of ₹84 lakh crore.
Household equity wealth creation since April 2020 was estimated at ₹53 lakh crore, despite some volatility.
- Who
- Indian households and individual investors
- What
- Moderation in direct equity buying, continued investment through mutual funds
- When
- 2024-2025, with data up to September 2025
- Where
- India, specifically the National Stock Exchange (NSE)
- Why
- Sustained confidence in equities as a long-term wealth creation avenue
- Net Investments in 2024
- ₹1.7 lakh crore ($19.8 billion)
- Net Outflows in 2025
- ₹5,717 crore ($0.6 billion)
- Cumulative Net Investments (6 years)
- ₹4.5 lakh crore
- Individual Holdings in Listed Equities
- 18.75%
- Total Value of Individual Holdings
- ₹84 lakh crore
- Household Equity Wealth Creation (April 2020-September 2025)
- ₹53 lakh crore
- Combined Household Equity Exposure (September 2025)
- ₹84 lakh crore