New Delhi, Aug. 9 -- Retail participation in India's financial markets is likely to deepen further as rising financial literacy, digital access and regulatory reforms continue to shift household savings towards market-linked instruments, according to the Securities and Exchange Board of India's (SEBI) Annual Report 2025-26.

The regulator's latest data points to continued expansion in mutual funds, SIPs and other professionally managed investment products, while stronger investor-protection measures are expected to support broader participation.

India's financial landscape is undergoing a structural transformation, with investors increasingly favouring financial assets over traditional instruments, the report said.

Mutual funds remain c...