Nearly 10% of Indian households invest in securities despite 63% being aware of at least one market product, according to a Sebi investor survey, released on Tuesday.
Among non-investors who are aware of securities products such as shares, mutual funds, ETFs, F&O, REITs/InvITs, bonds, AIFs, etc, 22% express an intent to invest within the next year, according to the Investor Survey 2025, a nationwide household study carried out by Kantar.
That said, nearly 80% of Indian households were found to prefer capital preservation over higher returns, while 79% of Gen-Z households display a risk-averse behaviour. While Gen-Z favors short-form video tutorials and reels, older cohorts prefer articles, podcasts, and workshops. A strong preference was found for regional language financial education across segments.
The survey was commissioned by Sebi along with the Association of Mutual Funds in India. Market infrastructure institutions (MIIs) such as the National Stock Exchange, BSE, National Securities Depository and Central Depository Services also joined hands.
How many households actually invest in the market?
Actual participation in investments is just 9.5% at around 32.1 million households. Urban participation (15%) is significantly higher than rural (6%). Delhi (20.7%) and Gujarat (15.4%) lead in urban participation. Only 36% of investors possess high or moderate knowledge of securities markets.
Key deterrents include complexity, lack of knowledge, trust deficits, and fear of losses. Non-investors aware of securities products and intend to invest within the next year seek simple digital platforms. Social media, mobile apps, and TV/digital ads are the most preferred education channels.
SEBI on the importance of the survey
The survey was undertaken against the backdrop of rising investor participation and the expanding role of the securities market in mobilising and allocating funds. The larger purpose is to shape strategies that promote responsible investing and make securities markets more inclusive, Sebi said.
It captured insights from investors, non-investors, lapsers, intenders, and intermediaries to provide a comprehensive view. It covered over 90,000 households across 400 cities and 1,000 villages, using both quantitative and qualitative methods.