Archive · 11 Oct 2026
EY Recommends Building Financial Capability for Long-Term Wealth
EY India says many more people in India use digital payments than invest in mutual funds or shares.
It believes India could gain 10 crore long-term investors by 2035.
Knowing that investing is important does not always help people take the first step or keep investing when markets move up and down.
The report says people need more than lessons about money.
They also need useful support when making real financial choices.
Beginners may need help getting started, while regular investors may need reminders and guidance during uncertain times.
Later, investors may need help checking their portfolios and planning for retirement or taxes.
The goal is to help people make suitable choices and stay on track with their long-term plans.
EY India says India could add 10 crore long-term investors by 2035, with wealth creation expanding beyond major metros.
The report contrasts more than 55 crore active UPI users with 6.2 crore mutual fund investors and about 5 crore active equity market participants.
EY argues that financial literacy alone often does not turn awareness into investing, persistence, or sound decisions during market volatility.
Its proposed capability approach combines education with confidence, judgment, relevant support, and behavior tailored to each investor’s stage.
Suggested interventions include guided onboarding, SIP prompts, support during volatility, portfolio reviews, and retirement, tax, protection, and succession planning.
- Who
- EY India and investors in India, particularly people at different stages of investing.
- What
- A report proposes shifting from financial literacy alone to practical financial capability to support long-term wealth creation.
- When
- The report says India could add 10 crore long-term investors by 2035.
- Where
- India, with wealth participation expanding beyond major metros into tier 2 and 3 cities.
- Why
- Awareness of investing does not consistently lead people to start investing, persist through volatility, or make suitable financial decisions.
Literacy-focused approach
Capability-focused approach
What helps broaden investor participation?
Literacy-focused approach
Financial literacy has been treated as the primary response, using awareness campaigns, educational content, and investor education programs.
Capability-focused approach
EY says awareness alone has not consistently translated into participation; investors also need practical support, confidence, judgment, and guidance suited to their circumstances.
What prevents people from investing effectively?
Literacy-focused approach
A literacy-centered approach emphasizes understanding financial concepts and investment products.
Capability-focused approach
The report says the challenge extends beyond knowledge: people may delay investing or discontinue SIPs during volatility, especially when uncertainty and competing priorities shape decisions.
- Report
- EY India's ‘Wealth inclusion in India: Expanding investor participation beyond metros’
- Long-term investor ambition
- India is set to add 10 crore long-term investors by 2035, according to the report.
- Active UPI users
- More than 55 crore
- Mutual fund investors
- 6.2 crore
- Active equity market participants
- About 5 crore
- Capability framework
- Help investors understand what a decision means for them, what to consider next, and what risks to understand before acting.
- Suggested outcomes
- Appropriate investing, persistence through market cycles, diversification, progress toward goals, and improved retirement readiness and financial resilience.