What percentage of Indian people invest in mutual funds?

As of 2023, only 8% of the Indian population invests in mutual funds. This is a very low percentage compared to other developed countries, such as the United States, where 46% of the population invests in mutual funds. There are a number of reasons for this low penetration of mutual funds in India, including:

• Lack of awareness: Many Indians are not aware of the benefits of investing in mutual funds. They may be unfamiliar with the concept of mutual funds, or they may be concerned about the risks involved.
• Lack of trust: Some Indians may be hesitant to invest in mutual funds because they do not trust the industry. There have been a number of high-profile cases of misselling of mutual funds in India, which has eroded public trust in the industry.
• High costs: The cost of investing in mutual funds in India can be high, which can discourage some investors.

Despite these challenges, the Indian mutual fund industry is growing rapidly. In the past few years, there has been a significant increase in the number of Indians investing in mutual funds. This growth is being driven by a number of factors, including:

• Rise in disposable income: As the Indian economy grows, more Indians are earning higher incomes. This has given them more money to invest, and many are choosing to invest in mutual funds.
• Increased awareness: The Indian government and the mutual fund industry have been working to raise awareness of the benefits of investing in mutual funds. This has led to more Indians learning about mutual funds and their potential benefits.
• Government reforms: The Indian government has implemented a number of reforms that have made it easier for Indians to invest in mutual funds. These reforms have made mutual funds more accessible to a wider range of investors.

The Indian mutual fund industry is still in its early stages of development, but it has the potential to grow significantly in the coming years. As more Indians become aware of the benefits of investing in mutual funds, the industry is likely to see continued growth.