The approach to wealth creation among Indian households is rapidly evolving. By FY25, total household wealth in India has reached a massive Rs 1,300–1,400 lakh crore, growing at a CAGR of approximately 13% over the past five years.
Indian investors are moving beyond traditional bank deposits and increasingly embracing capital markets. However, there remains significant room for growth. While 50%–60% of domestic wealth in the US is invested in capital markets, India’s share is still only around 15%–20%. This gap highlights that India is in the early stages of a structural transformation, with mutual funds and equities emerging as the fastest-growing asset classes.
Let us understand this journey of structural transformation with the help of a visual guide.
Wrapping Up
Retail investing in India has moved beyond personal wealth creation to become a key pillar of the Viksit Bharat 2047 vision. Over the next decade, individual mutual fund AUM is expected to cross Rs 300 lakh crore, while direct equity AUM could reach Rs 250 lakh crore, marking a new phase of wealth creation.
This expansion will also support job creation, with over seven lakh new roles likely in distribution and wealth management. Most importantly, mutual fund assets could grow to nearly 80% of India’s GDP by 2047, up from just ~13% in FY25, signalling that Indian households are transitioning from mere savers to active contributors in building a financially strong and self-reliant India.
*The article is for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
