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India's Equity Ownership Hits 20-Year High, But 500 Million Still on Sidelines
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Moneycontrol•29-09-2026, 13:34
India's Equity Ownership Hits 20-Year High, But 500 Million Still on Sidelines
- •Individual investors now own 18.7% of the Indian equity market, the highest share in over two decades, yet a significant gap exists between digital access and actual investing.
- •Despite 550 million active UPI users, only about 62 million invest in mutual funds and 50 million in equities, indicating a vast untapped market of over 100 million potential long-term investors by 2035.
- •The next wave of investors is emerging from non-traditional centers, with cities beyond the top 110 contributing 12% of mutual fund AUM and investors under 30 making up 38% of the investor base.
- •SIPs are now the primary investment vehicle, accounting for 35% of individual mutual fund AUM, nearly doubling since FY19, supported by micro-SIPs and a wide rural distribution network.
- •EY projects individual mutual fund AUM could exceed $3 trillion by 2035, emphasizing the need for a "Wealth Stack" that integrates digital identity, payments, AI-driven guidance, and scalable advice to foster persistent investing.
Key Questions Answered
Individual investors own 18.7% of the Indian equity market, which marks the highest share recorded in over two decades according to an EY report.
While India has over 550 million active UPI users, only about 62 million invest in mutual funds and roughly 50 million participate directly in equities.
Investors under 30 make up 38% of the investor base as of June 2026, up from 23% in FY19, while women investors in B30 cities have risen to 25% from 20% over the same period.
