At the same time, household liabilities are rising faster than financial assets, highlighting the uneven nature of wealth accumulation.
Gross financial assets of Indian households rose 9% in 2025 to $5.3 trillion, according to Allianz’s Global Wealth Report 2026. However, household liabilities increased 14.3% during the year, outpacing asset growth.
In real terms, Indian household financial assets increased 6.7% in 2025. Since 2019, real financial assets have risen 57%, significantly ahead of the 22.9% increase globally, Allianz said.
The composition of household financial assets is also changing. Insurance and pensions grew 11.4% in 2025, making them the fastest-growing major asset class, followed by deposits at 9.8% and securities at 6.1%. Deposits continued to account for the largest share of household financial assets at 40.2%, while securities accounted for 32.7% and life insurance and pensions for 26.7%.
The expansion in financial assets is taking place as participation in investing spreads beyond traditional investor segments.
An EY India report estimates that more than 100 million additional individuals could enter long-term investing by 2035. EY describes this as an ambition for the ecosystem rather than a passive forecast.
Younger investors already account for a larger share of the investor base. Investors below 30 represented 38% of the investor base in June 2026, compared with 23% in FY19, according to EY estimates.
The geographic profile of investing is changing as well. Cities outside India’s top 110 contributed 12% of mutual fund assets under management in FY25, while districts outside the top 10 accounted for 70% of NSE-registered investors trading during FY25, the report said.
Women’s participation in smaller cities has also increased. In B30 cities, women accounted for 25% of investors in FY24, up from 20% in FY19, according to EY.
The growing participation is also reflected in systematic investment plans. SIPs accounted for 35% of individual mutual fund assets, compared with 19% in FY19, EY said.
However, the expansion in the investor base does not necessarily mean that financial wealth is broadly distributed. Allianz said the richest 10% of Indian households held 65% of the country’s net financial assets in 2025. Their share increased by 6.8 percentage points between 2005 and 2025.
The data also underline the increasing importance of market-linked assets in wealth creation. Globally, financial assets rose 8.6% in 2025, with market gains accounting for roughly four-fifths of the increase, according to Allianz. Securities grew 12.4%, compared with 5.7% growth in deposits and 5% in insurance and pension assets.
For Indian households, the simultaneous rise in financial-market participation and liabilities means that a growing number of investors are entering the formal investment ecosystem even as household balance sheets are becoming more leveraged.
EY said the next phase of investor expansion would depend not only on digital access but also on financial capability, guidance and sustained participation. Its report projects individual mutual fund assets could exceed $3 trillion over the next decade, while individual direct equity holdings could reach around $2.5 trillion-$3 trillion.