India Targets 100 Million Investment-Savvy Investors by 2035

EY has released its latest report affirming India’s ambition to create 100 million long-term investors. The study, conducted by one of the world’s largest accounting firms and titled “Wealth Inclusion in India: Expanding Investor Participation Beyond Metros,” states that the world’s sixth-largest economy by nominal gross domestic product (GDP) could potentially add 100 million new long-term investors by 2035.

India’s Next Group of Long-Term Investors Is Broadening Significantly

In the past, investor participation in India was concentrated among certain groups and largely centred in metropolitan areas. EY’s latest study, “Wealth Inclusion in India: Expanding Investor Participation Beyond Metros,” indicates that this scenario is expected to change significantly over the next decade.

India’s long-term investors are expected to emerge from several sections of society, including young professionals, business owners and entrepreneurs, Gen Z investors, and female wealth creators. Additionally, the affluent class in South Asia’s largest economy is expected to increasingly include salaried households in smaller cities, Tier-2 and Tier-3 cities, and emerging affluent and digitally connected households.

EY’s September 2026 report indicated that individuals receiving wealth through business liquidity events, Employee Stock Ownership Plans or Employee Stock Option Plans (ESOPs) could also form part of the 100 million people expected to engage in long-term investing by 2035.

Increasing Diversification Among India’s Investors

According to “Wealth Inclusion in India: Expanding Investor Participation Beyond Metros,” India’s investor base is progressively expanding, with participants coming from different cities, genders, and age groups.

EY’s September 2026 report stated that investors from cities beyond India’s top 110 already accounted for 12 percent of mutual fund assets under management (AUM) in fiscal year 2025. Meanwhile, districts outside the top 10 accounted for 70 percent of National Stock Exchange of India Limited (NSE)-registered investors who traded during fiscal year 2025.

Furthermore, EY’s latest report pointed out that India’s investor base is becoming more gender-diverse. Female investors accounted for 25 percent of investors in fiscal year 2024, up from 20 percent in fiscal year 2019 in B30 cities, or urban areas beyond the top 30 mutual fund centres.

The age profile of Indian investors has also changed significantly. The share of investors below 30 years of age increased from 23 percent in fiscal year 2019 to 38 percent in June 2026.

EY estimates that individual mutual fund AUM could exceed US$3 trillion by 2035, while individual direct equity holdings could reach between US$2.5 trillion and US$3 trillion.

India’s Rising Systematic Investing Culture

According to EY’s latest study, a growing number of Indian investors are increasingly putting their hard-earned money into different investment vehicles.

At the Central Depository Services (India) Limited (CDSL) and the National Securities Depository Limited (NSDL), dematerialised or demat accounts—which digitally hold financial securities such as debt and equity for traded shares on the NSE—have increased roughly 5.5 times to more than 230 million since the COVID-19 pandemic.

Furthermore, the number of unique registered NSE investors has surpassed 130 million. Meanwhile, in March 2026, household equity holdings through both mutual funds and direct investments reached approximately US$800 billion.

According to EY estimates, this equity ownership figure has grown at an annualised rate of almost 30 percent since March 2020.

Systematic Investment Plans (SIPs) accounted for 35 percent of individual mutual fund AUM in India, up sharply from 19 percent in fiscal year 2019. EY’s latest report also confirmed an increasing preference among Indian investors for recurring and regular investments.

Micro-SIPs of approximately US$2.60, together with distribution partnerships covering more than 250,000 rural touchpoints, are helping bring underserved and first-time investors into the market.

India’s investable assets amounted to nearly US$5.2 trillion in fiscal year 2025. Financial assets accounted for approximately 34 percent of total household assets, up from 28 percent in fiscal year 2015.

EY’s September 2026 report also estimated that individual investors in India accounted for 18.7 percent of the equity market through mutual fund and direct equity ownership.

Demand for Greater Financial Guidance and Investor Capability

India has largely addressed the digital financial infrastructure challenge, according to EY’s latest report. Digital financial access is no longer the primary obstacle, as recent developments have opened the door for more people to participate in financial markets.

Account Aggregator, Aadhaar, eKYC, Unified Payments Interface (UPI), and DigiLocker have reduced barriers related to money transfers, financial data sharing, and the opening of investment accounts.

Today, India has more than 550 million active UPI users, compared with approximately 62 million mutual fund investors and around 50 million active equity market participants.

Digital financial access has scaled rapidly. However, EY noted that broad-based wealth creation remains at an early stage and that participation in market-linked investments is still relatively narrow.

According to EY’s September 2026 report, the next chapter of wealth inclusion will require a shift from financial literacy to financial capability.

Indian investors will need greater assistance in applying their financial knowledge to decisions involving long-term goals, savings, market risks, and investments.

EY has recommended a “Wealth Stack” that would build on India’s existing digital infrastructure to encourage more households to invest regularly, diversify their investments, understand investment risks, and remain invested through different market cycles.

The report emphasises that simply expanding access and opening investment accounts will not be sufficient. Investment products can be difficult to assess and may appear volatile and complicated, particularly for new investors.

EY’s proposed “Wealth Stack” is intended to make investing easier to navigate and access. The proposal would connect existing systems for payments, identity, and data with artificial intelligence (AI)-enabled tools, investor protection mechanisms, and investment advice.

Through the Wealth Stack, EY believes India’s investors could benefit over the long term by developing more diversified, informed, and sustained investing practices.