Equity and Mutual Fund Share in Household Savings Rises to 15% as SIP Contributions Grow Sevenfold

The Economic Survey 2025‑26 highlights a marked increase in equity and mutual fund participation within household savings, accompanied by a sevenfold rise in systematic investment plan (SIP) inflows. 

Equity and Mutual Fund Share Reaches 15% of Household Savings 

Data indicate that the proportion of equity and mutual funds in annual household financial savings grew from 2% in FY12 to 15.2% in FY25. This shift occurred alongside a steady decline in the share of traditional deposits, which fell from 58% in FY12 to around 35% in FY25. 

SIP Contributions Expand Sevenfold 

Average monthly SIP inflows increased from under ₹4,000 crore in FY17 to over ₹28,000 crore in FY26 (April‑November). The growth reflects a broader move towards disciplined, long‑term investing across market cycles. 

Read More: Axis Mutual Fund Lowers Minimum SIP Amount for Axis Silver Fund of Fund! 

Investor Base and Asset Growth 

RBI data show that equity and investment fund holdings rose from 15.7% of total household financial assets in March 2019 to 23% by March 2025. Mutual fund assets expanded from 10% of GDP in the early 2010s to nearly 23% of GDP in FY26, amounting to over ₹80 lakh crore. The number of unique investors grew from 3.1 crore in FY20 to more than 11 crore in FY25. 

Impact on Domestic Institutional Investors 

Domestic institutional investors, particularly mutual funds and insurance companies, continued to offset foreign capital volatility. DII ownership in NSE‑listed equities stood at 18.7% as of September 30, 2025, with mutual fund holdings reaching an all‑time high of 10.9% by value in Q2 FY26. 

Regulatory Development for REIT Investments 

From January 1, 2026, investments by mutual funds and specialised investment funds in REITs will be classified as equity‑related instruments, a change approved by SEBI to improve market participation and liquidity. 

Conclusion 

The Economic Survey underscores a structural shift in Indian household portfolios, with equity and mutual fund exposure rising to 15% and SIP contributions expanding sevenfold, indicating broader diversification beyond traditional deposits. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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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