Equity Allocation Rises Across Age Groups; 25–44 Bracket Jumps from 36% to 60%

Equity is steadily becoming the preferred investment choice across age groups in India. AMFI’s FY25 data highlights a broad shift away from debt and towards equity, especially in the 25–44 age group. Even traditionally conservative investors aged above 59 have increased their equity exposure. Hybrid schemes are also witnessing a rise in preference among senior investors, reflecting a more balanced approach to investment planning.

25–44 Age Group Records 60% Equity Allocation in FY25

The 25–44 age group recorded the most significant rise in equity allocations. In FY20, only 36% of their net inflows were directed towards equity funds. By FY25, this figure rose to 60%, indicating a growing preference for long-term, market-linked investments. This age group is now the largest contributor to net equity inflows.

45–58 Age Group Sees Equity Inflows Rise to 66%

Investors in the 45–58 age range increased their equity exposure from 49% in FY20 to 66% in FY25. This age bracket now holds the highest proportion of equity inflows among all groups, demonstrating increased trust in equity as a core portfolio component during mid-career years.

Above 59 Age Group Raises Equity Share from 40% to 56%

Traditionally risk-averse, investors aged 59 and above have also moved towards equity. Their allocation rose from 40% in FY20 to 56% in FY25. This shift may reflect the need for inflation-beating returns and evolving retirement planning strategies.

Under 25 Age Group Increases Equity Inflows to 47%

The youngest investor category, below 25 years, increased equity allocations from 41% to 47% over the 5-year period. While still the lowest among all age groups, this gradual rise shows that early investors are embracing equity as a viable long-term investment tool.

Read More: Amfi Data Reveals 5 Fund Houses Led FY25 with 31.6 Million New Folios!

Hybrid Fund Inflows Up from 11% to 16% in 59+ Investors

Hybrid mutual fund schemes have grown in popularity, especially among those above 59. In FY25, hybrid fund allocations in this group rose from 11% to 16%, suggesting a shift towards a mix of growth and capital preservation.

Debt Allocations Decline Sharply Across All Age Groups

The shift towards equity has led to a consistent decline in debt investments. In FY20, debt accounted for 49% of net inflows in the 25–44 age group, dropping to 18% in FY25. For the 59+ group, debt inflows fell from 46% to 21%.

The 45–58 group saw a reduction from 39% to 16%, while those under 25 decreased their debt allocation from 33% to 21%. This pattern confirms the broader reallocation away from fixed-income products.

Conclusion

The AMFI FY25 report signals a major shift in investor sentiment across all age brackets. With equity allocations growing steadily and debt losing prominence, mutual fund investors appear increasingly aligned with market-driven strategies tailored to their life stages and financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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