Mutual fund assets to grow fourfold in 10 years:40% of investors are under 30, up from 23% five years ago, says industry report

Mutual fund assets are expected to quadruple in the next 10 years, while equity holdings could grow sevenfold, driven largely by young investors, a leading global management consultancy said in a report. According to the “How India Invests 2025” report by Bain Company and Grow, 40% of equity investors are currently under 30, up from 23% five years ago, indicating a strong preference for equity-linked investments among the country’s youth. If this trend continues, the 18-34 age group—already the most active in mutual fund SIPs—will play a pivotal role in this growth, the report notes. By 2035, MF assets under management (AUM) are projected to exceed ₹300 lakh crore, up from around ₹80 lakh crore today. Meanwhile, direct equity holdings could reach ₹250 lakh crore, compared to just over ₹35 lakh crore currently. By then, mutual fund penetration in India is expected to double, reaching 20% from the current 10%. More Benefits in Long Term: Equities Returned 16% In 20 Years Historical data shows that investing with a long-term horizon—typically 5–7 years—helps investors navigate market ups and downs while benefiting from the power of compounding. Indian equity funds, for instance, have outperformed all other asset classes, delivering an average return of 16% over the past 20 years. New Investment Methods Could Generate 7 Lakh Jobs Shifts in investment practices are expected to create around 7 lakh new jobs in the coming years. With more domestic money flowing into the markets, the stock market will be less dependent on foreign portfolio investors. As Rakesh Pozhath of Bain notes, “We are entering a new, inclusive era of retail investment that will lay the foundation for a $10 trillion economy.” Digital Platforms Driving India’s Investment Revolution According to the report, 80% of equity investors and 35% of mutual fund investors in India now connect through digital platforms. Half of these are from tier-2 and smaller cities. Bain’s Saurabh Trehan said, “Long-term holdings and SIPs are deepening the investor base in India. This is the revolution that will finance India’s growth.