New Delhi, Dec 9 (LatestNewsX) – India’s mutual‑fund market is on track to double its reach from 10 % to about 20 % of households over the next ten years, a change that could reshape the country’s saving habits, a new study announced on Tuesday.
The forecast is from Bain & Company’s “How India Invests 2025” report, done with Groww, which argues that the next wave of growth will come from people in smaller towns and a new generation of young investors stepping into the market.
The research projects that mutual‑fund assets under management could exceed Rs 300 lakh crore by 2035, while direct equity holdings might hit roughly Rs 250 lakh crore.
Mum‑funds are expanding fast as more families take on market‑linked investments, driven by digital apps, supportive rules, and a growing confidence in long‑term wealth creation over simply saving cash.
Most of the fresh growth is expected to come from ordinary and mid‑income households living outside the top 30 metros, plus an emerging group of affluent investors spread across the next 70 cities who are likely to jump on mutual‑funds more actively.
This broadened participation shows up in the rise of long‑term plays—assets held for more than five years now account for more than twice what they did a few years back.
Saurabh Trehan, partner and head of Bain’s Financial Services practice in India, said families are steadily moving away from a pure savings mindset toward an investment‑driven one.
He added that young, first‑time investors, especially those distant from the big cities, are central to building India’s domestic investor base.
SIP inflows and long‑term holdings have surged, and these trends are expected to play a key role in financing India’s economic growth in the coming years.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
