While direct participation by individual investors in the equity market has moderated after record inflows in 2024, Indian households have continued to channel their savings into equities through mutual funds, highlighting sustained confidence in equities as a long-term wealth creation avenue, according to a report by the National Stock Exchange (NSE).
The report noted that after witnessing net investments of Rs 1.7 lakh crore in 2024 and consistent buying over the previous five years, individual investors turned moderate net sellers in 2025. During the year, net outflows from individual investors stood at Rs 5,717 crore.
Despite this moderation, cumulative net investments by individuals in NSE’s secondary market over the past six years remained strong at Rs 4.5 lakh crore, highlighting a structural shift toward market-based savings.
NSE stated, “direct buying by individual investors moderated after the record inflows seen in 2024; households continued to channel savings into equities”.
According to the NSE report, households continued to prefer indirect equity exposure through mutual funds even as direct equity buying slowed. This trend reflects growing maturity among investors and sustained belief in equities as a long-term asset class for wealth creation.
The report also highlighted the structural importance of ownership and household wealth effects. As per report data, individuals, both directly and through mutual funds, held 18.75% of listed equities, marking the highest share in over two decades.
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