The Economic Survey 2025 has highlighted a significant rise in retail participation in mutual funds, particularly through Systematic Investment Plans (SIPs). With over 10 crore SIP accounts created and cumulative inflows reaching ₹10.9 lakh crore since inception, individual investors are playing an increasingly vital role in the Indian securities market.
The report reveals that monthly SIP contributions have more than doubled in the past three years, rising from ₹0.10 lakh crore in FY22 to ₹0.23 lakh crore in FY25. Retail investors collectively hold mutual fund units worth ₹18.6 lakh crore as of December 2024, reflecting strong confidence in this investment avenue.
Additionally, the number of mutual fund folios has grown to 22.5 crore, up from 17.8 crore at the end of FY24.
The mutual fund industry’s Assets Under Management (AUM) experienced a substantial rise, reaching ₹66.9 lakh crore in December 2024. This marks a 25.3% increase from March 2024. The survey attributes this growth to sustained SIP inflows, healthy market performance, and technological advancements that have facilitated easier access to investments.
The increasing participation of individual investors has reshaped the Indian financial market. Mutual fund ownership in listed Indian companies reached a record 9.5% by September 2024, up from 8.7% in FY24. Direct and indirect investments by individuals now account for 17.6% of ownership in NSE-listed companies, equalling the share held by Foreign Portfolio Investors (FPIs).
These developments indicate a transformation in the Indian securities market, with retail investors playing a more prominent role in wealth creation. The steady rise in SIP contributions and mutual fund ownership highlights the growing inclusivity and resilience of the market.
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.
The Economic Survey 2025 has highlighted a significant rise in retail participation in mutual funds, particularly through Systematic Investment Plans (SIPs). With over 10 crore SIP accounts created and cumulative inflows reaching ₹10.9 lakh crore since inception, individual investors are playing an increasingly vital role in the Indian securities market.
The report reveals that monthly SIP contributions have more than doubled in the past three years, rising from ₹0.10 lakh crore in FY22 to ₹0.23 lakh crore in FY25. Retail investors collectively hold mutual fund units worth ₹18.6 lakh crore as of December 2024, reflecting strong confidence in this investment avenue.
Additionally, the number of mutual fund folios has grown to 22.5 crore, up from 17.8 crore at the end of FY24.
The mutual fund industry’s Assets Under Management (AUM) experienced a substantial rise, reaching ₹66.9 lakh crore in December 2024. This marks a 25.3% increase from March 2024. The survey attributes this growth to sustained SIP inflows, healthy market performance, and technological advancements that have facilitated easier access to investments.
The increasing participation of individual investors has reshaped the Indian financial market. Mutual fund ownership in listed Indian companies reached a record 9.5% by September 2024, up from 8.7% in FY24. Direct and indirect investments by individuals now account for 17.6% of ownership in NSE-listed companies, equalling the share held by Foreign Portfolio Investors (FPIs).
These developments indicate a transformation in the Indian securities market, with retail investors playing a more prominent role in wealth creation. The steady rise in SIP contributions and mutual fund ownership highlights the growing inclusivity and resilience of the market.
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.
Published on: Feb 1, 2025, 3:18 PM IST
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