Indian Household Securities Savings Nearly Double To ₹6.91 Lakh Crore In FY25

Indian households nearly doubled their savings routed through securities markets in FY25, with total flows reaching ₹6.91 lakh crore from ₹3.58 lakh crore the previous year, according to a research paper authored by three Securities and Exchange Board of India officials and uploaded to the regulator's website.

The paper is based on a revised methodology for computing household savings through securities markets, developed in consultation with the Reserve Bank of India and the Ministry of Statistics and Programme Implementation.

The new approach uses actual granular data from depositories, stock exchanges and the Association of Mutual Funds in India, replacing the earlier framework that relied heavily on estimates.

The Numbers

• FY25 household savings through securities markets: ₹6.91 lakh crore

• FY24: ₹3.58 lakh crore

• FY23: ₹2.60 lakh crore

• Primary market flows FY25: ₹6.31 lakh crore, up from ₹3.57 lakh crore in FY24

• Mutual fund inflows FY25: ₹5.13 lakh crore, up from ₹2.85 lakh crore in FY24

• Equity issuances FY25: ₹95,139 crore

• Secondary market flows FY25: ₹59,452 crore, up sharply from ₹818 crore in FY24

• Combined primary and secondary debt flows FY25: Over ₹1.04 lakh crore

• Household savings through securities as a percentage of gross domestic product (GDP): 2.17% in FY25 vs 1.71% under the old methodology.

Mutual Funds Now Dominate

Nearly four-fifths of the ₹6.91 lakh crore flowed through mutual funds, cementing their position as the primary vehicle for household financial savings in India.

The shift away from direct equity and toward professionally managed products has been building for several years, but the FY25 data makes the scale of that transition impossible to ignore.

Households Still Selling Direct Equity

Despite record overall flows into securities markets, households were net sellers of direct equity for the third consecutive year.

Net outflows from direct equity stood at ₹54,786 crore in FY25, following net selling of ₹69,329 crore in FY24 and ₹27,684 crore in FY23.

The Broader Savings Picture

The revised methodology also lifted India's gross savings to GDP ratio for FY25 by 47 basis points to 34.94% from 34.47% under the earlier approach. The household savings to GDP ratio improved to 21.7% from 21.23%, and net household financial savings rose to 7.10% of GDP from 6.63%.

The total stock of household assets held in Indian securities markets at the end of FY25 stood at ₹141.34 lakh crore, with equity holdings accounting for ₹88.92 lakh crore, mutual fund investments at ₹44.39 lakh crore and alternative investment fund investments at ₹1.55 lakh crore.

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The paper noted that the old methodology had excluded investments in preferential allotments, private placements of debt, secondary market transactions and newer instruments including Real Estate Investment Trusts, Infrastructure Investment Trusts and Alternative Investment Funds. The new framework captures all of these, giving a materially more complete picture of where Indian household savings are actually going.

Sources:

CNBC

Fortune India