India’s investment landscape could enter a new phase over the coming decade, with younger people, women and households in smaller cities expected to play a major role in expanding long term investment participation. According to a recent EY India report, the country could add more than 100 million additional long term investors by 2035, potentially creating one of the world’s largest investor ecosystems.
The report, titled Wealth Inclusion in India: Expanding Investor Participation Beyond Metros, says India’s financial inclusion journey has already created a large foundation for the next stage of wealth creation. Digital identity, banking access, mobile connectivity, real time payments and consent based data sharing have connected hundreds of millions of Indians to formal financial services. The next challenge is to help more households participate in long term investments and build financial wealth.
A significant part of this potential is expected to come from outside the country’s biggest metropolitan centres. EY identifies Tier 2 and Tier 3 cities as important sources of future investor growth. Rising incomes, wider digital connectivity and easier access to financial products are making it possible for people in smaller cities and towns to participate more actively in mutual funds, equities and other investment products.
The shift is already visible in available investor data. EY said cities beyond the top 110 now contribute about 19 percent of mutual fund assets under management, compared with 10 percent in FY19. It also noted that districts outside the top 10 accounted for 70 percent of NSE registered investors who traded in FY25, up from 61 percent in FY21. These figures indicate that investment participation is gradually spreading beyond the traditional metropolitan investor base.
Younger Indians are another important part of this changing investment landscape. EY reported that investors below the age of 30 represented about 40 percent of registered investors, compared with 23 percent in FY19. The growing presence of young investors reflects wider access to digital financial services and greater familiarity with online investment platforms.
Women are also becoming increasingly visible in India’s investment ecosystem. EY reported that average mutual fund folio sizes among women increased by 23 percent between FY19 and FY24. The trend suggests that women are becoming a more important part of household wealth creation and financial decision making. However, the expansion of participation will also depend on whether investors have access to suitable financial information and trusted guidance.
Government data provides further evidence of the broader expansion of the investor base. According to the Economic Survey 2025-26, India crossed 12 crore unique investors with demat accounts in September 2025, with nearly one fourth of them being women. The Survey also reported that India had 5.9 crore unique mutual fund investors as of December 2025, of whom 3.5 crore were from non Tier 1 and Tier 2 cities.
The number of investors participating through systematic investment plans has also increased substantially. The Economic Survey said the unique investor base contributing through SIPs grew from around 3.1 crore in FY20 to more than 11 crore by FY25. This expansion indicates the increasing role of regular investment products in household financial planning.
Despite this progress, EY said a large gap remains between financial access and meaningful participation in long term investments. Many households have bank accounts, digital payment access and financial connectivity but have not yet moved from saving to investing. Concerns about market volatility, investment risks, product complexity and the lack of trusted guidance can discourage first time investors.
This creates what EY describes as an advice gap. Traditional financial advisory models can be difficult to scale across a large and geographically diverse population. New investors may require simple explanations, financial education, personalised guidance and support during different stages of their investment journey.
Technology could play an important role in addressing this challenge. EY highlighted India’s Digital Public Infrastructure, including Aadhaar, UPI, DigiLocker and Account Aggregator frameworks, as an important foundation for improving access to financial services. The report proposes a broader Wealth Stack that could combine digital identity, payment infrastructure, consent based financial data, advisory services, technology and investor protection mechanisms.
Artificial intelligence could also become part of the next stage of financial guidance. According to EY, AI could support investor profiling, financial planning, portfolio analysis, personalised financial education and behavioural support. When combined with human expertise and appropriate governance, such technology could make financial guidance available to a much larger number of households.
However, the expansion of the investor base will not be measured only by the number of new accounts. EY emphasised the importance of financial capability, which involves helping people understand investment risks, make informed decisions and remain focused on long term financial goals.
For first time investors, this could include guidance when starting a SIP, responding to market volatility, reviewing an investment portfolio or planning for retirement. The focus is therefore shifting from simply increasing access to financial products towards helping households use those products effectively.
India’s growing domestic investor base could also have wider implications for the financial system. A larger pool of domestic investors can contribute to deeper capital markets and support capital formation. Individual investors already account for a significant share of the Indian equity market, with EY reporting individual participation through direct equity holdings and mutual funds at 18.7 percent.
EY’s projection of more than 100 million additional long term investors by 2035 is therefore linked to a broader transformation in how Indians participate in wealth creation. The report identifies young professionals, women, Tier 2 and Tier 3 households, entrepreneurs, business owners and emerging affluent families as important potential investor groups.
The projected expansion is not guaranteed and will depend on several factors, including income growth, financial awareness, investor confidence, access to suitable products, technology adoption and the availability of reliable financial guidance. Investor protection and responsible financial advice will also remain important as participation expands.
If these factors develop together, India could move from a financial inclusion model focused primarily on access to banking and payments towards a broader wealth inclusion model in which more households participate in long term investments. By 2035, EY estimates that more than 100 million additional people could become long term investors, with smaller cities, younger Indians and women forming an increasingly important part of the country’s investment ecosystem.
