The Economic Survey 2024-25 showed a remarkable surge in India’s mutual fund sector, with the number of unique investors doubling from 2.9 crore in FY21 to 5.6 crore by December 2024. This significant growth highlights the increasing inclination of Indian households towards financial market investments.
According to the survey, Systematic Investment Plans (SIPs) have played a crucial role in this trend. The monthly average gross SIP inflows have more than doubled over the past three years, increasing from ₹0.10 lakh crore in FY22 to ₹0.23 lakh crore in FY25. Mutual fund ownership in Indian listed companies has risen to a fresh all-time high of 9.5% in the quarter ending September 2024.
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The increase in Demat accounts further reflects this trend, with the number of unique account holders rising to 11.5 crore by December 2024. This increased investor participation has created a positive feedback loop, where strong market returns attract more investors, thereby contributing to the overall growth of the financial markets.
The Economic Survey attributes this expansion to regulatory actions and technology developments facilitating investing. To reach a broader range of investors, the mutual fund business has become crucial in directing financial resources into risk capital production by utilising innovation and technology.
Since FY21, the number of unique mutual fund investors has doubled, indicating a favourable change in India’s investing environment and the increased trust that retail investors have in the mutual fund sector.
The Economic Survey 2024-25 was presented by the Ministry of Finance of the Government of India. As a prelude to the upcoming budget, the survey thoroughly analyses the country’s economic trajectory and establishes the rationale and foundation for financial decisions affecting millions of Indians.
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