• Investor base expansion: The mutual fund industry grew from under ₹7 lakh crore 17 years ago to ₹80 lakh crore, adding 50 million unique investors since December 2019 to cross 60 million total investors, with projections to add the next 100 million within 10 to 12 years.
• Geographic market shift: Investment inflows are decentralizing away from major metros, with the contribution of the top 10 cities dropping from historical levels of 72% to 90% down to approximately 50% as smaller cities and towns gain market share.
• Onboarding and barriers: While digital KYC and UPI rails have reduced friction, identifying the appropriate starting product and streamlining the remaining KYC complexities remain the primary hurdles for first-time investors.
• Micro-SIP adoption: Introducing daily SIP options of ₹50 to ₹100 per day has driven significant user acquisition, especially among self-employed individuals and micro-entrepreneurs who struggle with fixed monthly deductions of ₹2,000 to ₹3,000.