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Stocks, MFs gaining fast as savers shift allegiance from banks

November 28, 2025

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Business Standard

Share of household savings in these instruments has doubled over the past year

- SACHIN P MAMPATTA

Incremental flows of household savings into stock markets and mutual funds (MFs) relative to bank deposits have more than doubled over the past year.

For every ₹100 worth of savings invested in bank deposits, households invested ₹45.2 in MFs and equities in 2024-25 (FY25), shows a Business Standard analysis of data from the November Reserve Bank of India (RBI) Bulletin. The corresponding figure was ₹21.2 in 2023-24 (FY24). The total money that MFs manage was *79.9 trillion as of October 2025. This is 33 per cent of the aggregate banking deposits of ₹41.7 trillion. MFs accounted for around 29 per cent of bank deposits in March 2025.

A combination of low deposit rates, increased financial literacy, and ease of investment through financial technology platforms has caused more money to flow into MFs and the stock market.

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