Ashish Misra, Deputy CEO, BLS E-Services Ltd
Earlier, for most Indian families, saving money meant keeping cash, gold, land or money in fixed deposits (FDs). This is now changing. Indian families are slowly moving from keeping money at home or relying only on traditional saving options to investing in mutual funds, SIPs and the stock market.
According to SEBI data, the share of financial savings in total household savings increased from 27% in FY23 to 33% in FY25. During the same period, investment in mutual funds and participation in the stock market also increased.
According to NSE, the number of individual investors increased from around 3 crore in 2019 to more than 12 crore in 2025.
India’s saving habit is changing. People are moving from “save your money” to “invest your money and grow it for the future.” However, with this change, it is also important to understand the risks involved in market-based investments.
“How Much Can It Become After 20 Years?”
Earlier, whatever money was left at the end of the month was often kept in a piggy bank, bank FD, gold or land. Today, some of this money is going into SIPs, mutual funds and the stock market. The piggy bank has not disappeared. Its place has changed.
Earlier, money was kept in a cupboard, locker or bank account. Today, people can invest the same money with just a few clicks on a mobile app.
A young person between 25 and 30 years may now think about putting aside ₹2,000–₹5,000 every month and building a bigger fund over the long term.
Earlier, the question was, “How much did I save today?” Now, another question is being added: “How much can this money become after 20 years?”
Saving and investing are not the same thing. Keeping money in a bank and investing money in the stock market involve different levels of risk.
According to SEBI data, money coming into mutual funds through the primary market increased from ₹1.66 lakh crore in FY23 to ₹5.13 lakh crore in FY25.
Banking Reached Villages and Changed the Investment Picture
Business Correspondents (BCs) have played an important role in taking banking services to different parts of India. They are local representatives of banks who provide banking services in areas where bank branches are not easily available.
They act as a link between banks and people who live far from bank branches or are not yet fully connected to formal banking services.
BCs help people open savings accounts, deposit money regularly and save safely close to their homes. This helps small savings gradually become money that can be used for investment.
They also help eligible people receive government scheme benefits, provide information about small loans and assist people with applications.
BCs also provide information about insurance and investment products in remote areas. When people do not have to spend time and money travelling to a bank branch, their participation in financial services can also increase.
The Stock Market Is No Longer Only for the Rich
Earlier, the stock market was mainly seen as a place for big business owners and expert investors. Today, mobile apps and easier KYC processes have made it easier for ordinary people to start investing.
According to NSE data, the number of individual investors increased from around 3 crore in 2019 to more than 12 crore in 2025. In just four to five years, crores of new people have entered the world of investment.
According to SEBI, in FY25, Indian households held around ₹141.3 lakh crore in market-linked financial assets, including shares, mutual funds, debt products, REITs and InvITs.
Of this, around ₹88.9 lakh crore was in equity and around ₹44.4 lakh crore was in mutual funds.
How India’s Saving Habit Is Changing
RBI data shows that the share of equity in household savings increased from 1.3% in FY21 to 2.1% in FY25. During the same period, the share of mutual funds increased from 2.1% to 13.1%.
At the same time, the share of cash decreased from 12.6% to 5.9%. India’s saving story is not only about numbers. It is also about a change in the way people think about money.
This change is not limited to big cities like Delhi and Mumbai. It can also be seen in small cities, towns and villages. The entry of crores of new individual investors shows that investing is no longer limited to a small group of wealthy people.
Young people are starting with small amounts, more women are taking part in investing, and BCs and local banking representatives are helping take financial services across the country. India’s saving story is no longer only about keeping money aside. It is also about using that money to build a better future.
However, as investment increases, it is equally important to understand the risks involved.
SIP Is Making Investing a Regular Habit
A person can invest a small amount every month according to their income and ability. For example, if a young person saves ₹2,000 every month, they can choose to put it into a long-term SIP instead of only keeping it in a bank account.
Market risk will always be there, but long-term investment can provide an opportunity to grow the money. SIP is now becoming more than just an investment method. It is slowly becoming a regular monthly saving habit.
According to the Bain–Groww How India Invests report, the mutual fund AUM of individual investors reached around ₹41 lakh crore in FY25.
Women Are Also Taking Part in Investing
According to NSE, women made up around 24.7% of investors as of November 2025. In Uttar Pradesh, the share was around 18.9%, while it was around 28.8% in Maharashtra and 28.1% in Gujarat.
Women’s participation in mutual funds is also increasing. In B30 cities, the share of women investors increased from around 20% to 25%. This also shows a growing move towards financial independence among women.
However, along with the growth in investment, it is important to understand the risks. Investing in the stock market and understanding the risks of investing are two different things.
The saving habit is changing across Indian households. But this does not mean that the old piggy bank has become useless.
The real idea is to keep enough money in savings for financial safety and use investments to prepare for the future. Saving money can provide financial safety, while investing it carefully and with proper planning can help build a stronger financial future.