The number of unique mutual fund investors in India grew to 5.4 crore in 2025, a 20 per cent rise from 4.5 crore in 2024 and a 42 per cent jump from 3.8 crore in 2023.
Published: August 12, 2025 7:39 PM IST
Indian stock markets are now less dependent on foreign investors, as they are getting strength from domestic participation and inflows through SIPs (Systematic Investment Plans). In just five years, the number of demat accounts has increased five times, and records are being invested in SIPs every month. This trend has helped Dalal Street to stand strong even when foreign investors are leaving the market.
By the end of June, domestic institutional investors’ (DIIs) shareholding in companies listed on the NSE (National Stock Exchange) had risen to a record 17.82%. At the same time, foreign institutional investors’ (FIIs) share fell to 17.04% which is a 13-year low. The surge in SIP investments has boosted mutual funds’ market share to an all-time high of 10.56%. Including retail investors and high-net-worth individuals (HNIs), domestic investors now control 27.40% of the market. This has reduced the dominance of foreign investors in the Indian market.
How Demat Accounts Are Rising?
According to The Economic Times, growing investor participation has led to transformation. In March 2020, there were only 4.1 crore demat accounts. By June 2025, the number had exceeded 20 crore which is five times higher in just five years. What took 23 years to achieve in terms of growth has been matched in the last five years alone.
Brokers estimate that the number of unique investors, based on PAN data, is under 10 crore. Earlier equity investing was limited to a small section of the population. Investors under the age of 30 have played a major role in this rise. There are currently 4.8 crore active clients who trade at least once a year. Retail investors now account for more than half of daily market transactions, leading to a democratization of wealth creation.
Groww, Angel One, SBI and HDFC Securities: Who Registered Highest SIPs?
The mutual fund industry experienced strong growth in new Systematic Investment Plan (SIP) registrations, with 1.67 crore accounts added in the quarter ended June 2025, driven by resilient retail participation despite market volatility.
This was significantly higher than the 1.41 crore registrations in the previous quarter, according to data from the Association of Mutual Funds in India (AMFI).
Groww emerged as the market leader, adding over 41.9 lakh new SIPs during the quarter, commanding a market share of 25 per cent.
In June alone, Groww registered 15.7 lakh new SIPs, making it the highest monthly addition by any distributor in the segment. In value terms, new SIPs registered on the Groww platform during the June quarter stood at Rs 1,116 crore, marking a sharp 32 per cent growth over the previous quarter.
Angel One, the second-largest contributor, added 15 lakh new SIPs during the quarter. Among traditional distributors, NJ IndiaInvest added 5.9 lakh, while SBI and HDFC Securities recorded 4.3 lakh and 3.8 lakh new SIPs, respectively. PhonePe, another digital-first platform, added approximately 5.9 lakh SIPs, largely concentrated in lower-ticket investments.
(With Inputs From PTI)