Why are more young Indians and women entering mutual funds, markets?

India’s investing landscape is witnessing a major demographic shift as young Indians and women increasingly enter mutual funds and equity markets. Industry leaders say rising financial awareness, digital investing platforms and long-term wealth creation goals are reshaping how Indians approach money and investing.

Speaking at Groww’s India Investor Festival 2026 in Mumbai, Lalit Keshre, CEO and Co-founder of Groww, said the country’s retail investing ecosystem has transformed dramatically over the last decade, both in scale and investor profile.

The investing boom

According to Keshre, one of the biggest structural changes in India’s financial markets has been the rapid rise of younger investors. “A lot of young folks have come into the markets,” Keshre said at the event. “India is young, and that itself takes care of the fact that many young investors are coming into the market.”

The trend reflects a wider shift in financial behaviour among younger Indians, many of whom are starting investments early through systematic investment plans (SIPs), direct equity and exchange-traded funds (ETFs).

Unlike earlier generations that traditionally preferred fixed deposits, gold or real estate, younger investors are increasingly focusing on long-term wealth creation through market-linked products.

Experts say easy access to investment apps, financial content on social media and simplified digital onboarding have significantly lowered barriers to entry for first-time investors.

SIP culture

Keshre highlighted the sharp growth in SIP participation over the last decade as evidence of changing investor behaviour. “Our SIP book used to be around Rs 3,000 crore ten years back. Today it is more than Rs 30,000 crore,” he said.

The rise in SIP inflows indicates growing confidence among retail investors in disciplined, long-term investing despite market volatility. India’s mutual fund industry has also expanded sharply during this period.

“Do you know what our mutual fund AUM was ten years back? It was around Rs 12 lakh crore. Today it is more than Rs 80 lakh crore,” Keshre said.

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The growth reflects increasing retail participation, rising disposable incomes and greater awareness around financial planning.

Women investors

Another major trend reshaping India’s investing ecosystem is the growing participation of women investors in capital markets.
“Another very interesting change has been the rise of women investors,” Keshre said. “Now almost one out of four investors are women investors coming into the market.”

Financial experts say women are increasingly taking independent investment decisions, driven by higher workforce participation, financial literacy initiatives and easier access to digital financial tools.

Women investors are also seen favouring disciplined investing approaches such as SIPs, diversified mutual funds and goal-based financial planning.

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The shift is viewed as an important indicator of financial maturity in India’s retail investing ecosystem.

Investing patterns

Keshre also pointed to the geographical expansion of investing activity beyond major metropolitan centres.
“Earlier, people who had access to markets or mutual funds were mostly from Tier-1 cities,” he said. “But now you see investors coming from Tier-2 and Tier-3 cities, from Uttar Pradesh, Bihar, the Northeast, eastern India and across the country.”
This broader participation has been enabled by smartphone penetration, digital KYC processes and increased awareness around investing in smaller cities and towns.

Beyond markets

Apart from discussing market growth, Keshre also highlighted Groww’s efforts to contribute to education, deep-tech innovation and skill development through the Pro Foundation.

The organisation has partnered with institutions such as IIT Bombay and IISc Bengaluru to support research and scholarship programmes. “We believe that the next big value drivers in India will come from deep tech,” Keshre said.

He added that the foundation is also supporting students through scholarship initiatives and community programmes aimed at expanding access to opportunities beyond financial markets.

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