Business · India Bureau
Indian households increasingly favour mutual funds and equities
Mutual funds and equities have emerged as a preferred investment destination for Indian households, accounting for 15 per cent of financial savings in FY25. The shift reflects growing investor confidence in capital market instruments.
LSN India ·
Indian households are demonstrating a marked preference for mutual funds and equity investments, according to data from Bajaj Mutual Fund. The twin asset classes accounted for 15 per cent of total household financial savings during FY25, underscoring a significant reallocation of retail investor capital towards capital markets.
The momentum in mutual fund inflows reflects broader structural shifts in Indian household investment patterns. Mutual fund assets have swelled to represent 31 per cent of total bank deposits in 2025, a substantial proportion that highlights the growing traction of market-linked instruments among retail investors seeking higher returns.
The migration of household savings from traditional deposit-heavy portfolios to diversified mutual fund and equity holdings indicates increasing financial literacy and risk appetite among Indian investors. This trend aligns with demographic shifts, growing middle-class incomes, and improved accessibility to investment platforms across the country.
The data suggests that Indian households are increasingly comfortable with capital market exposure as a core component of their investment strategy, moving beyond conventional banking channels. This development has positive implications for equity market depth and the retail investor base supporting India's capital markets infrastructure.