India could add 100 million new long-term investors by 2035: EY

India could bring more than 100 million additional individuals into long-term investing by 2035, as investor participation broadens beyond metropolitan centres to smaller cities, women, young professionals and digitally connected households, according to EY’s latest report, Wealth Inclusion in India: Expanding Investor Participation Beyond Metro India. The report describes the 100-million figure as an ambition rather than a passive forecast.

The opportunity is underpinned by a large gap between digital financial access and actual investment participation. India currently has more than 550 million active UPI users, compared with around 62 million individuals investing in mutual funds and approximately 50 million actively participating in equity markets. EY said this indicates that while financial access has expanded rapidly, broad-based wealth participation remains at an early stage.

Smaller cities, young investors to drive growth

The next wave of investors is expected to emerge from several groups, including salaried households in Tier-2 and Tier-3 cities, women wealth creators, young professionals, Gen Z investors and emerging affluent households.

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Cities beyond India’s top 110 already contributed 12% of mutual fund AUM in FY25, while districts outside the top 10 accounted for 70% of NSE-registered investors trading during FY25. The share of investors below 30 years rose to 38% in June 2026, from 23% in FY19. In B30 cities, women accounted for 25% of investors in FY24, up from 20% in FY19.

The report also points to a growing culture of systematic investing. SIPs accounted for 35% of individual mutual fund AUM, compared with 19% in FY19. Micro-SIPs of around US$2.6, along with distribution partnerships covering more than 250,000 rural touchpoints, are helping bring first-time and underserved investors into the market.

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From financial access to wealth creation

India’s household asset mix is also changing. Investable assets reached nearly US$5.2 trillion in FY25, while individual investors accounted for 18.7% of the Indian equity market through direct equity and mutual fund ownership.

However, EY said simply increasing access and opening investment accounts will not be sufficient. Investment products can appear complex, volatile or difficult to evaluate, creating a need for greater guidance and financial capability.

The report proposes a “Wealth Stack” combining digital identity, payments, recurring investment mechanisms, consent-based financial data, AI-enabled intelligence, scalable advice and investor protection. EY expects individual mutual fund AUM to exceed US$3 trillion, while individual direct equity holdings could reach US$2.5 trillion-3 trillion over the next decade.

The report argues that the success of India’s wealth-inclusion journey should ultimately be measured not just by account openings or AUM, but by investor persistence, diversification, financial resilience and long-term wealth outcomes.

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