India's Mutual Fund Boom: A Surge in Retail Investment

Mutual fund assets in India are set to surpass Rs 300 lakh crore by 2035, driven by rising retail participation and digital adoption. A report predicts a significant shift in Indian savings behavior toward investment, with mutual funds and direct equities growing rapidly, particularly among younger investors and smaller cities.

A recent report reveals that mutual fund assets in India are expected to reach over Rs 300 lakh crore by 2035, fueled by increased retail participation and digital adoption. The joint study by Bain & Company and investment platform Groww underscores a shift in consumer behavior toward investment in mutual funds and equities.

The report, titled 'How India Invests,' predicts that mutual fund penetration in Indian households will double from 10 to 20 percent in the next decade. This is attributed to growing digital infrastructure, supportive regulations, and increased investor trust. The trend is also marked by a move away from speculative trading towards long-term investing.

Key demographics driving this shift include Gen Z and millennials. Additionally, women and investors from smaller cities are expanding the investor base. As digital platforms facilitate easy access, investors under 30 now account for a substantial share of market participants. Alongside, IPO proceeds from SMEs have shown marked growth, reflecting increased liquidity and interest.

(With inputs from agencies.)