Investing Paradigm Shift: Indian Household Wealth Surges 13% To Rs 1.30 Lakh Cr In FY25

India's household wealth surged to the range of Rs 1,300– Rs 1,400 lakh crore in FY 2025, signalling 13% growth over the last five years, according to the Bain and Company report. 

In the current fiscal year, retail investing underwent a structural transformation, with mutual fund and listed equity assets growing fastest, outpacing deposits.

However, India still lags global economies on mutual fund and equity allocation; this activity constitutes 15%–20% of the Indian market, while it is 50%–60% in the US and 40%–45% in Brazil, the Boston-hadquarteed firm noted. 

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“Meanwhile, the Mutual fund AUM for individuals reached Rs 41 lakh crore by the end of FY25. This growth can be primarily attributed to an increase in household penetration, from 5%–6% to 10%–11% over the last five years, ” it said. 

Growing confidence in equity-based funds and systematic investment plans (SIPs) and rising financial literacy have been key to this growth.

Coming to direct equity, Individual direct equity holdings reached “Rs 42 lakh crore by the end of FY25”, led by an increase in penetration. Dematerialized accounts grew nearly five times over the last five years, because of a post-pandemic boom in IPOs. Many factors facilitated that boom: ease of access through new-age digital players, shifting demographics in favor of younger investors, growing financial literacy, and digital public infrastructure support.

Which 5 Mega Trends Drove India's Inevsting Mindset In FY25?

• The Gen Z segment has emerged as a significant force, with its share of NSE- registered investors below 30 years old increasing to ~40% in FY25 vs. ~25% in FY20.
• The rise of app-based platforms like Groww, Zerodha, and Upstox has made investing paperless, accessible and user-friendly. These platforms contribute ~80% of the total number ofretail equity investors in India.
• Removal of the NOC requirement for MFD change, scheme rationalization, and theuniform expense cap have
  helped build trust with investors.
• A surge in regional and digital financial content (e.g., on YouTube, Instagram, and fintech apps) is making investing concepts more relatable.
• Nifty 50 and Sensex delivered 10%–15% returns in the last 10 years, reinforcing the long-term value of equity investing. Mutual funds, particularly equity-oriented ones, have outperformed traditional fixed deposits by a wide
  margin over the past five years.