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Household Savings Shift Dramatically
Indian households are changing how they save, moving away from gold and real estate towards market investments. New research from the Securities and Exchange Board of India (SEBI) details this significant shift.
Mutual Funds See Strong Inflows
Money flowing into mutual funds has increased sharply, becoming a common savings method. In the primary market, inflows jumped from ₹1.66 lakh crore in FY23 to ₹5.13 lakh crore in FY25, showing the growing appeal of Systematic Investment Plans (SIPs) and mutual funds for regular saving.
Market Investing Goes Mainstream
SEBI estimates Indian households held ₹141.3 lakh crore in assets like equities, mutual funds, debt, REITs, and InvITs in FY25. Equities made up ₹88.9 lakh crore, with mutual funds adding ₹44.4 lakh crore. This suggests market investing is becoming common practice, not just for experts.
Financial Savings Are Growing
While gold and property still hold a larger share of household savings, financial savings are steadily increasing. Net financial savings as a portion of total household savings rose from 27% in FY23 to 33% in FY25. This trend indicates greater comfort with market investments.
Post-Pandemic Investment Surge
The investment growth seen since the COVID-19 pandemic is evident in household savings data. The report notes a "spectacular increase" in individual market participation after the pandemic. Household savings through the securities market grew from ₹2.59 lakh crore in FY23 to ₹6.91 lakh crore in FY25, boosted by investment apps, easier digital sign-ups, and greater awareness of SIPs.
New Calculation Method Clarifies Data
The SEBI paper also points out that previous estimates might have underestimated household market participation. Using a revised calculation, household savings via the securities market reached ₹6.91 lakh crore in FY25, compared to an older estimate of ₹5.43 lakh crore. This updated method includes a wider range of investments like ETFs, REITs, InvITs, and secondary market trades for a clearer picture of current Indian investment trends.