Indian households are increasingly turning to equities for their long-term savings, with the share of equities in household financial savings nearly doubling from around 17% in fiscal 2016 to approximately 31% by September quarter of fiscal 2025.
The upward trend is expected to continue for the next 8-10 years, driven by factors like lower fixed-income yields, the absence of social security schemes, and the rise of digital investment platforms.
Participation in direct equities and mutual funds has increased, largely at the expense of bank deposits and insurance.
The strong performance of Indian markets and the continued flow of domestic investments into equities, with mutual funds leading the charge, is contributing to the rise in household exposure to equities.