Moneycontrol MF Summit Bengaluru: The psychology behind India's billion-dollar investment boom

India’s mutual fund industry is in the middle of a transformation. In just five years, total assets under management have tripled to Rs 75 lakh crore, proof of how rapidly Indian investors are maturing and moving from chasing short-term returns to building long-term wealth.

At the HDFC Mutual Fund presents Moneycontrol Mutual Fund Summit 2025- Bengaluru Edition, powered by Axis Mutual Fund, Akhil Chaturvedi, Executive Director at Motilal Oswal, unpacked this evolution of investor behaviour and financial confidence. "The experience of investors over the last decade has been pretty good… investors have made good returns," he said, pointing to how consistent outcomes have built trust in financial markets.

This growing confidence has been driven largely by the rise of Systematic Investment Plans (SIPs). As Chaturvedi explained, “This trend of investing in mutual fund SIPs to create wealth is becoming more and more acceptable.” SIPs have turned investing into a habit, especially in smaller cities where first-time investors now see mutual funds as a reliable way to participate in India’s growth story. “People have understood that if you really want to add 3-4% to your purchasing power, you can’t achieve that without going into equities,” he added. Indians are increasingly embracing market-linked assets with discipline, committing to regular investments despite volatility.

While gold continues to hold cultural importance, the new generation of investors is viewing equities and passive investing as key wealth creators. “Over the last year, what has happened in gold and silver clearly has stumped everybody,” said Chaturvedi. “In this kind of environment, one needs to have a strategic allocation towards gold and silver.” This shows a more balanced, data-driven approach to diversification as investors grow more confident in their understanding of markets.