Over 550 mn UPI users, 69 mn MF investors and 50 mn stock buyers — why are millions still not investing? Report decodes

India's digital financial ecosystem has expanded rapidly, putting the convenience of instant payments within reach of hundreds of millions of people. However, access to these services has not yet translated into equally widespread participation in wealth-building products such as equities and mutual funds.

A recent EY India report highlights this disparity clearly, as it noted that India has more than 550 million people active UPI (unified payments interface) users, compared with around 62 million individuals investing in mutual funds and nearly 50 million actively participating in equity markets.

The figures, the report says, points to an evident gap between access to digital financial services and participation in long-term investments. Digital payments have made it increasingly easier to invest in mutual funds and stocks, as everything is just a click away.

Why millions remain outside investment ecosystem?

According to the company's report, which detailed investor behaviour in India, the gap is no longer primarily about access to financial infrastructure.

"Many households are financially connected, economically capable and digitally active, but remain under-invested because market-linked products feel complex, volatile, unfamiliar or difficult to evaluate,” it states.