Although 63% of Indian households, around 213 million, are aware of at least one securities market product, only 9.5% or around 32.1 million households, actively participate in the markets.
The national study, conducted by Kantar, interviewed more than 90,000 households in 400 cities and 1,000 villages, making it one of the largest surveys of its kind. The insights from investors, non-investors, intolers, lapsers and intermediaries to give an extensive picture of the investment ecosystem.
Urban participation percentages were significantly higher in 15%, compared to only 6% in rural areas. Delhi and Gujarat registered the highest engagement levels at 20.7% and 15.4% respectively.
Even among those who invest, only 36% have a high or moderate level of knowledge about securities markets, which underlines the widespread need for better financial education.
Investor behavior showed a strong preference for the preservation of capital, in which almost 80% of households gave priority to safety above the return. This conservative approach also extended to younger demography, in which 79% of Gen-Z-households showed risk-aging tendencies. The report identified important barriers to investments, including product complexity, lack of knowledge, low trust and fear of losing. Among non-investors who are planning to invest within the following year, common expectations include simpler digital platforms, streamlined processes, recognizable success stories and lower access barriers. In terms of education, social media, mobile apps and TV or digital advertisements, the most preferred channels for learning about investments emerged. Gen-Z respondents preferred short videos and roles, while older cohorts tended to articles, podcasts and workshops. In age groups there was a strong demand for financial education in regional languages.
Awareness and use of the Sebi complaints system were limited, although those involved with the platform reported almost 90% satisfaction with the results.
It is encouraging that 22% of non-investors were already aware of securities products, an intention indicated to invest within the following year.
The report concludes that the unlocking of this untouched potential requires that trust in financial systems requires, simplify the investment process and expanding the efforts for financial literacy, in particular by regional language initiatives.
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