In contrast, the share of term deposits declined from over 58% in FY12 to around 35% in FY25, after having fallen to as low as 31.9% in FY22, the economic surve

Household equity wealth soars by Rs 53 trillion in five years, share of mutual funds jumps seven-fold to 15.2%

Economic Survey Highlights Shift in Household Savings

The latest economic survey has revealed a significant shift in household savings, with a notable increase in investments in equities and mutual funds. According to the survey, the share of household investments in mutual funds has jumped seven-fold, while that of fixed deposits has slipped to 35% from 58%.

Household Equity Wealth Sees Substantial Growth

The household equity wealth has grown by about Rs 53 trillion between April 2020 and September 2025, as per the survey. This growth is a result of the increasing share of equity and mutual funds in annual household financial savings.

The share of equity and mutual funds in annual household financial savings has increased from around 2% in FY12 to over 15.2% in FY25.
Average monthly SIP flows have increased seven times from under Rs 4,000 crore in FY17 to over Rs 28,000 crore in FY26 (April-November).

Individual Investors Play a Growing Role

The share of individual investors has increased from around 11 percent in FY14 to 14.3% in FY19, and further to 18.8% by September 2025. In absolute terms, individual equity holdings expanded to around Rs 84 trillion by September 2025, from just Rs 8 trillion in FY14.

Term Deposits See Decline in Share

In contrast, the share of term deposits declined from over 58% in FY12 to around 35% in FY25, after having fallen to as low as 31.9% in FY22.

Direct and Indirect Equity Market Ownership

A notable aspect of the move to equities is the growing proportion of individuals in total equity market ownership, accomplished through both direct and indirect means. While the direct participation of individuals in equity markets grew slowly, rising from just under 8% in FY14 to around 9.6% by September 2025, the indirect share nearly tripled, reaching 9.2% during the same period.

This shift in household financial savings over the past decade reflects a fundamental change in how additional financial resources are allocated.