India’s investor base set to grow beyond cities and demographics
India’s investor base is projected to swell by over 100 million by 2035, EY India’s latest report states. This growth will stem primarily from increased involvement in smaller cities, younger demographics, women, and households with digital access. The trend is already visible in current market data.
Mutual fund assets in cities outside India’s top 110 now account for 12 per cent of total assets under management. Meanwhile, districts beyond the top 10 represented 70 per cent of NSE-registered investors trading in FY25. Younger investors, those below 30, made up 38 per cent of the investor base in June 2026, up from 23 per cent in fiscal year 2019. This demographic shift reflects broader financial inclusion.
Women in mid-sized cities are also becoming more active participants. In B30 cities, women represented 25 per cent of investors in FY24, up from 20 per cent in FY19. Systematic investment plans (SIPs) accounted for 35 per cent of individual mutual fund AUM, compared with 19 per cent in FY19. These figures highlight changing investment behaviors.
The report points out that while India has 550 million active UPI users, only 62 million invest in mutual funds and 50 million actively participate in equity markets. Expanding participation will require more than digital access; it demands consistent engagement and personalized financial guidance. EY India’s analysis identifies smaller cities, women, young professionals, and emerging affluent households as key drivers of future growth.
India’s investable assets reached nearly $5.2 trillion in fiscal year 2025, with individual investors holding 18.7 per cent of the equity market through direct holdings and mutual funds. Over the next decade, individual mutual fund AUM is expected to exceed $3 trillion, while individual direct equity holdings are projected at approximately $2.5 trillion to $3 trillion.
Unlike past expansions that focused solely on new accounts or asset growth, this phase will prioritize persistence, diversification, and financial resilience. The report stresses that long-term wealth creation depends on sustained habits and informed choices rather than participation alone.
Pratik Shah, EY India’s National Financial Services Leader, emphasized that guidance will be as important as access. Vishal Madia, Partner for Wealth and Asset Management, noted that digital infrastructure could be combined with consent-based data sharing, AI-enabled intelligence and scalable advice to build what the report describes as a “Wealth Stack”.
