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,Pratik Shah, National Financial Services Leader, EY India
Mumbai: Driven by young professionals, women wealth creators, entrepreneurs, ESOP beneficiaries, and digitally active consumers from Tier-2 and Tier-3 cities, a new generation of investors is transforming India’s wealth ecosystem, a report said on Tuesday.
“This is already visible in the data,” said EY India’s report ‘Wealth Inclusion in India: Expanding Investor Participation Beyond Metro India’.
More than 100 million Indians could enter long-term investing by 2035, driven by rising participation from smaller cities, young investors, women and digitally connected households, as per EY India’s latest report,
The opportunity is underpinned by a largely untapped base of financially connected consumers.
India currently has over 550 million active UPI users. In comparison, around 62 million individuals invest in mutual funds and approximately 50 million actively participate in equity markets. The gap indicates that while digital access has scaled rapidly, broad-based wealth participation is still at an early stage.
The share of NSE-registered investors under 30 years old increased to 38 per cent in June 2026 from 23 per cent in FY19.
In B30 cities, women investors accounted for 25 per cent of investors in FY24, up from 20 per cent in FY19, it added.
“These investors have different expectations. They are more digitally native, more self-directed and more comfortable engaging through technology,” the report said.
At the same time, they continue to seek trust, validation and guidance when making significant financial decisions.
“A cultural shift toward disciplined investing is also underway,’ it said, and added SIPs now account for 35 per cent of total individual mutual fund AUM, up from 19 per cent in FY19, reflecting the increasing salience of sustained, recurring and goal-oriented investing behaviour.
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.