New Delhi: Mutual fund assets under management (AUM) are projected to exceed Rs 300 lakh crore by 2035, with direct equity holdings expected to reach Rs 250 lakh crore over the same period, according to a joint report by consulting firm Bain & Company and investment platform Groww.

This growth is driven by rising retail participation and a deepening digital adoption, the report said. According to the report titled 'How India Invests', mutual fund penetration across Indian households is expected to double from 10 per cent to 20 per cent over the next decade. The next wave of growth in the mutual fund industry will be driven by "increasing household adoption, strong digital enablement, supportive regulation and growing investor trust".

On the other hand, the expected growth in equity participation can be attributed to the shift from speculative trading to long-term investing, in addition to continued digitally driven penetration and strong market performance. The Securities and Exchange Board of India (Sebi) has introduced several stringent measures to curb excessive speculation and manage risk in the derivatives market. These rules encourage investors to move toward steadier, wealth-building instruments by making speculative futures and options (F&O) trading less accessible and more costly for retail participants.