India’s equity market ownership by individuals hits 20-year high, but 500 mn still on the sidelines

New business data points to the fact that Individual market participants now own 18.7% of the Indian equity market. This is the highest share in more than two decades. yet the gap between digital access and actual investing stays vast, according to a new EY report.

India has over 550 million active UPI users. Only around 62 million invest in mutual funds and roughly 50 million participate in equities. That gap is the core opportunity EY is flagging: more than 100 million additional long-term market participants could enter the market by 2035 if access is converted into sustained participation.

The next wave is already visible outside the traditional centres. Cities beyond the top 110 now contribute 12% of mutual fund AUM. Districts beyond the top ten accounted for 70% of NSE-registered market participants who traded in FY25. Market participants under 30 make up 38% of the investor base as of June 2026, up from 23% in FY19. In B30 cities, women market participants have risen to 25% from 20% over the same period.

SIPs have become the primary vehicle. They now account for 35% of individual mutual fund AUM, nearly double the 19% share in FY19. Micro-SIPs and a distribution network spanning more than 250,000 rural touchpoints are pulling in first-time and underserved market participants.

Investable household assets have touched nearly $5.2 trillion. EY projects that individual mutual fund AUM could cross $3 trillion by 2035, with direct equity holdings in the $2.5–3 trillion range. The firm argues that simply opening accounts will not be enough. Many households still hesitate because products appear complex or volatile.

The note proposes a “Wealth Stack” that links digital identity, payments and SIPs with consent-based data, AI-fuelled guidance and scalable advice. The aim is to move from pure access to guided, persistent investing rather than one-time product sales.