November 20, 2025

Backed by powerful campaigns, simplified digital onboarding, and strong retail participation, mutual funds have overtaken stocks in investor recall across India, according to the latest SEBI Investor Survey 2025. Despite equities being traded in India for over a century—with the Bombay Stock Exchange (BSE) established in 1875 and the National Stock Exchange (NSE) in 1992—mutual funds have now become the most popular investment vehicle. Mutual Funds Awareness Surpasses Stocks The survey found that: This clearly shows that mutual funds—not stocks—are the top-of-mind investment product for Indian investors. Growth Beyond Metros: B30 Cities Driving the Surge One of the most striking findings is the rise of mutual fund assets from beyond the Top-30 (B30) cities. Regulators now see Tier-2 and Tier-3 cities as the next engine of growth for the Indian mutual fund industry. The Journey of Mutual Funds in India While equities have been around for over 100 years, the mutual fund industry is relatively young: Explosive Industry Growth According to AMFI: Expanding Investor Base: Women & First-Time Savers SEBI and AMFI are working together to broaden participation: Conclusion The SEBI survey confirms a historic shift: mutual funds have overtaken stocks in popularity among Indian investors. With massive AUM growth, rising SIP adoption, and expansion into Tier-2 and Tier-3 cities, the mutual fund industry is set to remain a dominant force in India’s financial markets. For individuals looking to start their investment journey, mutual funds offer simplicity, diversification, and long-term wealth creation potential. If you want to learn how to analyze mutual funds, equity markets, and investment strategies, check out our Mutual Fund Training Course at ISFM – Best Stock Market School.