India’s investment behaviour is undergoing a major structural shift in 2025, as households move away from traditional bank deposits toward market-linked instruments. According to Bain & Company’s How India Invests 2025 report (with Groww), mutual funds and direct equities are now the fastest-growing asset classes, driven by digital platforms, rising financial literacy, and deeper penetration in smaller cities.

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•  Households shifting structurally from deposits to market-linked assets; MFs & direct equities now fastest-growing categories.
•  MF + equity allocation still low at 15–20% of investable assets vs 50–60% in U.S./Canada → huge growth runway.
•  MF AUM expected to exceed ₹300 lakh crore by FY2035, driven by rising participation from B30 cities.
•  Direct equity holdings projected to hit ₹250 lakh crore as investors move from speculation to long-term wealth creation.
•  Digital platforms dominate participation: ~80% of new direct equity investors and ~35% of MF investors came via online channels.
•  Household MF penetration doubled from ~5–6% to ~10–11% in five years; expected to reach ~20% by 2035.
•  Salaried investors lead SIP adoption; business owners tilt toward direct equities; Gen Z more reactive to markets, Gen X steadier.
•  Demat accounts grew nearly 5× in five years amid post-pandemic IPO surge and easier digital onboarding.
•  India’s household wealth touched ₹1,300–1,400 lakh crore in FY25, rising 13% in five years.
•  Regulatory support, retirement schemes, strong MF performance, and expanding distributor network will accelerate future penetration.