The Untapped Indian Market

In India, less than 5% of the population invests in Mutual Funds (MFs), and as per SEBI conducted survey, only 6.7% of Indians consider investing in Mutual Fund schemes (MFs). Even with this minuscule penetration into the population, the overall Average Assets Under Management (AAUM) of India’s Mutual Fund portfolio stood at a whopping ₹ 81,92,388 Cr, or ₹ 81.94 Lakh Cr, as of April 2026, with a 6 fold increase from ₹14.22 Lakh Cr in a span of 10 years. Also, the Mutual Fund (MF) industry crossed a milestone mark of 10 crore folios during the month of May 2021.

Growth of AUM in a span of a decade

In that survey, SEBI had reported that it is purely because of the lack of awareness of mutual funds that Indians are hesitant to invest in them, and they continue with traditional investments like deposits. The Reserve Bank of India (RBI) reports that 45.8% of household financial assets are held in term deposits (FY2025). It can also be noted that most indicate that 50–70% of Indian households are likely to hold some form of term deposit or fixed deposit, directly or jointly through family members.

At the same time, other investment mechanisms, such as 9.5% of Indian households invest in securities markets, and 80% of households prefer capital preservation and low risk products. But with the advent of technological advancements and easier access for people to invest, these numbers are meant to grow in the future. As existing numbers clearly indicate, soon, it will be an optimistic trend of growth in investment in this sector.