Indian households add Rs 53 trillion to equity wealth in five years

Economic Survey data show rising retail ownership and a steady shift towards equity-linked savings

Driven by a fundamental shift in savings habits, Indians are increasing investments in equity markets as individual and household ownership and wealth reach record highs, according to the Economic Survey.

 

The share of individual investors in equity ownership has increased from 11 per cent in FY14 to 18.8 per cent in September 2025. “In absolute terms, individual equity holdings expanded to around Rs 84 trillion by September 2025, from just Rs 8 trillion in FY14,” said the survey.

 

Source: Economic Survey 2025-26

This rise is driven more by indirect participation than by direct stockholding, said the survey on Thursday. Direct equity ownership was at 9.6 per cent in September 2025 and indirect share (through mutual funds) at 9.2 per cent. Indirect equity holdings have grown at a faster pace since FY19, indicating a clear preference for diversified, professionally managed products.

 

 

The post-pandemic period marked a turning point. The unique investor base increased from 31 million in FY20 to more than 110 million by FY25 and though the pace of new additions moderated recently, domestic inflows into equities remain resilient, the survey said.  ALSO READ | Decoding Economic Survey 2025-26: Five ideas that explain India's economy

Household equity wealth

Between April 2020 and September 2025, household equity wealth increased by an estimated Rs 53 trillion. The growth coincided with rising systematic investment flows and a household savings steadily shifting to equities and equity-linked products. The share of equities and mutual funds in annual household financial savings rose from around 2 per cent in FY12 to over 15 per cent in FY25. The share of deposits declined but continues to be a significant part of household portfolios.

 

From a balance sheet perspective, equity and investment funds now account for a larger share of household financial assets than before, reflecting a gradual but persistent rebalancing.     

Source: Economic Survey 2025-26

 

Data signal for retail investors

 

The survey said that households are not abandoning traditional savings avenues, but are increasingly adding equity exposure alongside deposits and insurance products. Mutual funds, in particular, have emerged as the preferred route for participating in equity markets.

 

At the same time, the data point to a gap in household participation in market-based debt instruments, which remain a small part of financial assets. As households have embraced equities, extending diversification to other asset classes may be the next phase of portfolio evolution.

 

For now, the rise in individual ownership and equity wealth signals a structural shift: Indian households are becoming long-term participants in capital markets, rather than occasional investors driven by market rallies.