India’s mutual fund industry could witness significant growth over the next decade, with the number of unique investors potentially increasing from 6.6 crore to between 24 crore and 26 crore. Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey shared this projection on Thursday, citing an estimated annual compound growth rate of around 14–15 per cent.
Mutual Fund Investor Base Could Grow Significantly by 2036
According to Pandey, applying a compound annual growth rate of approximately 14–15 per cent to the current base of 6.6 crore unique investors could take the figure to around 24–26 crore within 10 years.
The projection highlights the potential for wider participation in mutual funds as more people gain access to financial markets. However, Pandey clarified that SEBI would not set specific targets for increasing the number of mutual fund investors, emphasising the importance of informed and responsible participation.
SEBI Focuses on Easier Access to Financial Markets
Pandey said making investments simpler for domestic investors and foreign portfolio investors (FPIs) is a fundamental responsibility of the market regulator. He highlighted the importance of removing unnecessary barriers and enabling investors to access financial markets more conveniently.
He also discussed efforts to bring financial information from different sectors together. As part of this initiative, Pandey said he had written to the Insurance Regulatory and Development Authority of India (IRDAI) regarding the inclusion of insurance holdings in the financial data network.
The proposed integration aims to support a more comprehensive consolidated account statement (CAS) under the Account Aggregator framework. Such a statement could bring together information on stocks, mutual funds, National Pension System (NPS) holdings, bank deposits and insurance policies, giving individuals a more consolidated view of their financial assets.
Investor Protection and Financial Awareness Remain Priorities
While India’s mutual fund investor base is expected to expand, Pandey stressed that investor awareness, discipline and caution must remain central to the growth of the market.
He urged market infrastructure institutions, depositories, brokerages and other financial intermediaries to invest in technology and strengthen their security systems. These measures are important for protecting investors and safeguarding their investments as digital participation increases.
Pandey also highlighted SEBI’s Project Jagruk, an initiative designed to make financial awareness an essential life skill. The programme seeks to help people understand investments and financial markets in a manner similar to how they learn to use mobile phones and digital applications.
As part of its awareness efforts, SEBI reportedly sent nearly 44 crore investor awareness messages in nine days through digital platforms. The initiative is available in 13 languages and aims to reach people across the country, including those in remote regions such as Ladakh, Kashmir and Arunachal Pradesh.
Pandey encouraged people to access investor education material in the languages they use most comfortably. The broader objective is to improve financial literacy, help individuals understand investment risks and support more informed financial decisions as participation in India’s markets grows.
