Mutual fund awareness high in India, but adoption remains low: Nirmal Bang
While 63% of households are aware of at least one financial product, mutual fund penetration stands at just 6.7%.
This highlights a significant gap between knowledge and usage.
The country is also experiencing strong growth in financial activity. Mutual fund assets under management (AUM) have crossed ₹75 lakh crore, and systematic investment plan (SIP) inflows are exceeding ₹28,500 crore per month.
Digital payments via UPI are also booming, with over 20 billion transactions recorded monthly.
Rakesh Bhandari, Managing Director of Nirmal Bang, said the low penetration indicates a large opportunity for wealth management and advisory services.
“Millions of families know financial products exist, but very few are actually using them to build wealth. Advisors can help individuals stay disciplined, manage risks, and plan for life goals,” he added.
Experts note that the next wave of investors is expected not only from metropolitan areas but also from Tier-2 and Tier-3 towns, many of whom will seek guidance in regional languages.
Behavioral support through advisory services is cited as a key factor in helping investors sustain SIPs and long-term wealth creation.
As India’s middle class continues to expand, bridging the gap between financial awareness and adoption will be critical for inclusive wealth creation.
