EY sees 100 million new long-term investors by 2035
Smaller cities, young investors and women are emerging as key sources of India’s next wave of wealth participation
By 2035, India may welcome over 100 million new long-term investors, as investment participation extends beyond bustling metropolitan areas, according to an EY India report published on Monday. Currently, India boasts roughly 500-550 million active UPI users, yet only around 62 million individuals invest in mutual funds, while about 50 million actively engage in equity markets.
The forthcoming wave of investors is anticipated to originate from tier-2 and tier-3 cities, young professionals, women, emerging affluent households, entrepreneurs, and other wealth creators. Cities outside India's top 110 contributed 12% of mutual fund assets under management in FY25, while districts beyond the top 10 accounted for 70% of NSE-registered investors trading in FY25, compared to 61% in FY21.
Additionally, investors are becoming younger, with those under 30 constituting 38% of investors in June 2026, up from 23% in FY19. In B30 cities, women represent 25% of investors in FY24, up from 20% in FY19. Systematic Investment Plans (SIPs) now comprise 35% of individual mutual fund assets under management, a significant increase from 19% in FY19.
The report also highlights the rise of micro-SIPs valued at approximately $2.6 million and distribution partnerships covering over 250,000 rural touchpoints. EY notes that the challenge is morphing from access to maintaining participation, with investors requiring guidance on risk, product appropriateness, and long-term portfolio construction.
EY predicts individual mutual fund assets under management to surpass $3 trillion within the next decade, while individual direct equity holdings could reach $2.5-3 trillion.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
