MUMBAI: Noting the quick shift of household savings away from banks to equities and mutual funds, the economic survey has said the share of household investments in mutual funds has jumped seven-fold, while that of fixed deposits has slipped to 35% from 58%. The household equity wealth has grown by about Rs 53 trillion between April 2020 and September 2025, it added.
"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. This shift has coincided with a steady rise in SIP contributions, with average monthly SIP flows increasing seven times from under Rs 4,000 crore in FY17 to over Rs 28,000 crore in FY26 (April-November)," the survey said Thursday.
“The share of individual investors 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,” the survey said.
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 survey said.
This shift in household financial savings over the past decade reflects a fundamental change in how additional financial resources are allocated.
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.