India can add over 100 million long-term investors by 2035 as wealth creation expands beyond metros: EY Report

Investor growth moves beyond metropolitan India

The report states that the next wave of wealth creation is expected to emerge from multiple participation pools, including salaried households in Tier-2 and Tier-3 cities, women wealth creators, young professionals and Gen Z investors, among others.

Cities beyond India's top 110 cities now contribute 12% of mutual fund assets under management, while districts beyond the top ten account for 70% of NSE-registered investors trading in FY25. Investors under the age of 30 now represent 38% of the investor base (June 2026), up from 23% in FY19, while in B30 cities, women investors accounted for 25% of investors in FY24, up from 20% in FY19.

SIPs now account for 35% of total individual mutual fund AUM, compared with 19% in FY19. Micro-SIPs of approximately US$2.6 and distribution partnerships spanning more than 250,000 rural touchpoints are also supporting participation among first-time, underserved and rural investors.

Commenting on the report insights, Pratik Shah, National Financial Services Leader, EY India said, “India's first financial revolution was about connecting citizens to the financial system. The next one will be about connecting households to wealth creation. While the country has made remarkable progress in expanding access through digital public infrastructure, the ambition now is helping millions of Indians participate confidently in long-term investing. The next wave of growth will come from smaller cities, women investors, young professionals and emerging affluent households, many of whom need guidance as much as they need access.”

Adding to it, Vishal Madia, Partner – Wealth and Asset Management, EY India said, “India has successfully built the digital infrastructure for financial access; the next opportunity is to build the infrastructure for wealth creation. By combining DPI, consented data sharing, AI-driven intelligence and scalable advice, India can create a Wealth Stack that democratizes investing, strengthens financial capability and enables millions of households to participate meaningfully in long-term wealth creation."

From digital access to guided wealth creation

The report highlights that India’s household asset mix is already beginning to change. Investable assets have grown to nearly US$5.2 trillion in FY25, while individual investors now account for 18.7% of the Indian equity market through direct equity and mutual fund ownership, the highest level recorded in more than two decades. Despite this progress, India remains underpenetrated.

The report suggests that infrastructure and product access alone will not create durable investor participation. Many households remain hesitant because investment products can appear complex, volatile or difficult to evaluate.

The report proposes the development of a “Wealth Stack” that connects digital identity, payments and recurring investment mechanisms with consent-based financial data, AI-enabled intelligence, scalable advice and investor-protection frameworks. Its five layers comprise access, data, intelligence, advice and trust, creating an operating model focused on guided wealth creation rather than product distribution alone. The report positions the future model as a combination of AI-led intelligence and human judgement rather than a choice between the two.

Building capability, not merely awareness

Looking ahead, the report estimates that by 2035, individual mutual fund assets under management is expected to grow to more than US$3 trillion over the next decade, while individual direct equity holdings are expected to reach approximately US$2.5 trillion to US$3 trillion over the same period. However, it argues that success should not be measured solely through account openings or assets under management, but through deeper indicators such as investor persistence, diversification, financial resilience and long-term wealth outcomes.

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About the report

Wealth Inclusion in India: Expanding Investor Participation Beyond Metro India examines how India can build on its financial inclusion success to broaden participation in long-term investing and wealth creation. The report explores the evolving India investment landscape, the rise of emerging investors in India, changing patterns of household wealth, and the growing role of technology in expanding access to investment opportunities.

India 2035 ambition

India can bring more than 100 million additional individuals into long-term investing over the coming decade. This should be understood as an ambition rather than a passive forecast. As outlined in the report, achieving it may require the ecosystem to address not only acquisition and onboarding but also the factors that determine whether participation becomes sustained and productive.

About EY

EY is building a better working world by creating new value for clients, people, society, and the planet, while building trust in capital markets. Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow. EY teams work across a full spectrum of services in assurance, consulting, tax, strategy, and transactions.

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