One group lost ₹2.87 lakh cr. Another made ₹3.54 lakh cr.

Summary: Think trading is your ticket to quick riches? Here’s a reality check: retail traders lost nearly Rs 3 lakh crore in the last four years, while India’s top mutual funds quietly made more than that. We crunched the numbers, and the contrast is staggering — and deeply instructive for every Indian investor. If you’ve ever been tempted by F&O or day trading, you’ll want to read this.

---

Every bull market attracts two kinds of investors: those chasing overnight success with trades, and those patiently compounding wealth through long-term investments. A recent data dive reveals who’s actually winning — and it’s not even close.

According to SEBI’s annual study on the F&O segment, individual investors in India lost a staggering Rs 2.87 lakh crore in trading over the last four financial years (FY22–FY25).

During the exact same period, India’s 10 largest actively managed equity mutual funds collectively generated Rs 2.26 lakh crore in profits. Expand that to the top 20 equity funds and the gains jump to Rs 3.54 lakh crore.

Let that sink in: the top 20 mutual funds made more than what all retail traders lost — and with far less risk.

Year-wise breakdown:

The bottom line? While traders are bleeding money trying to beat the market, disciplined investors — those using SIPs in diversified funds — are quietly compounding wealth.

Why mutual funds win:

• Diversification cushions market shocks.
• Professional fund managers make data-backed decisions.
• Time in the market is greater than timing the market.

Who should think twice before trading?

Most retail investors. Especially those with a low risk appetite or FOMO-fuelled decision making. The odds are stacked against you. SEBI’s F&O study shows that 9 out of 10 traders lose money, and most profits are concentrated in a tiny minority.

Want to build real wealth?

Before you try your luck with the next hot stock, consider this: At Value Research Fund Advisor, we don’t promise overnight gains. But we do offer you a time-tested, data-driven path to long-term wealth creation — tailored to your goals, risk appetite and investing journey.

Want to start your first SIP in flexi-cap or small-cap funds? Or optimise your existing portfolio?

Discover our top fund recommendations and personalised portfolio tools at Value Research Fund Advisor.

Join Now

This article was originally published on July 14, 2025.