India to gain 100 million long-term investors by 2035: EY report
An EY report reveals India could see 100 million new long-term investors by 2035, driven by tier-2/3 cities, women, and young professionals.
India is standing on the brink of a massive financial transformation. According to a recent report by EY, the nation is poised to add more than 100 million long-term investors by the year 2035. This surge is expected to be propelled by a significant rise in participation from tier-2 and tier-3 cities, as well as increased engagement from women, young professionals, and digitally connected households.
While India has already established one of the world's most robust infrastructures for financial access, the report suggests that the next frontier is moving from simple digital connectivity to guided wealth creation. The opportunity lies in tapping into a massive, largely underserved consumer base that is already connected to the digital economy but has yet to fully embrace long-term investing.
The Changing Face of Indian Investing
The data highlights a significant shift in how and where Indians are investing. The geographic landscape of domestic investment is rapidly expanding beyond major metropolitan hubs. Key findings from the report include:
- Beyond Metro Cities: Cities outside the top 110 locations now contribute 12 per cent of mutual fund assets under management (AUM).
- NSE Growth: Districts outside the top ten accounted for 70 per cent of National Stock Exchange (NSE) registered investors during the 2025 financial year.
- Youthful Energy: The investor demographic is getting younger, with individuals under the age of 30 making up 38 per cent of the investor base as of June 2026, a sharp rise from 23 per cent in FY19.
- Women's Participation: In "beyond-top-30" (B30) cities, women now represent 25 per cent of investors, up from 20 per cent five years ago.
The Rise of SIPs and Micro-Investing
Systematic Investment Plans (SIPs) have become a cornerstone of the Indian investment habit. SIPs now constitute 35 per cent of individual mutual fund AUM, compared to just 19 per cent in FY19. The accessibility of investing has also been bolstered by micro-SIPs of approximately USD 2.6 and an extensive distribution network featuring over 250,000 rural touchpoints, helping reach first-time investors in underserved areas.
From Financial Access to Wealth Creation
Pratik Shah, National Financial Services Leader at EY India, emphasized that the country is transitioning through different stages of financial evolution. He noted that while the first revolution was about connecting citizens to the financial system, the upcoming phase is about connecting households to actual wealth creation.
"The next wave of growth will come from smaller cities, women investors, young professionals and emerging affluent households, many of whom need guidance as much as they need access," said Shah.
Despite the growth, market penetration remains relatively low because many retail households still perceive investment products as being too complex or volatile. To bridge this gap, the report suggests the implementation of a five-layer "Wealth Stack". This framework would include access, data, intelligence, advice, and trust to help households navigate the markets through institutional collaboration.
Future Projections and the 'Wealth Stack'
Vishal Madia, Partner – Wealth and Asset Management at EY India, pointed out that the success of India's Digital Public Infrastructure (DPI) provides a foundation for this next step. He suggested that by integrating DPI with consented data sharing and AI-driven intelligence, India can democratize investing.
The economic implications of this shift are enormous. The EY report provides the following projections for 2035:
- Mutual Fund Assets: Individual mutual fund assets are expected to surpass USD 3 trillion.
- Equity Holdings: Retail direct equity holdings are projected to reach between USD 2.5 trillion and USD 3 trillion.
With household investable assets having already climbed to nearly USD 5.2 trillion in FY25, the transition from being "digitally connected" to "wealthy" remains the defining challenge and opportunity for India's financial future.