9.5 per cent of Indian households are invested in securities market products despite 63 per cent reporting awareness of at least one such product, according to an investor survey released by on Tuesday.
The study shows a stark gap between awareness and actual participation as complexity, information gaps, trust issues, risk, and return concerns act as the main deterrents among potential investors. The nationwide survey, conducted after a decade, covered over 91,000 households across urban and rural India.
MF awareness
SEBI found that while nearly 213 million households are aware of products like mutual funds, ETFs, and stocks, only about 32 million households hold investments.
Participation is heavily skewed toward urban centres, with penetration at 15 per cent compared to just 6 percent in rural areas. In metros, nearly one in four households reported investments, but in states such as Bihar and Nagaland, penetration was below 8 percent.
Risk aversion was a main barrier for intenders with four out of five households prioritising capital preservation over returns. Fear of losses, uncertainty around performance, and lack of trust in financial institutions were some of the key reasons for staying away. Even among youngsters or Gen-Z, 79 per cent display risk-averse behaviour.
Mutual funds and ETFs have the widest reach, with 6.7 per cent household penetration, followed by stocks at 5.3 percent. However, sophisticated products like derivatives, REITs, corporate bonds and AIFs had penetration levels below 1 percent. Even among existing investors, knowledge levels remain shallow — only 36 per cent demonstrated moderate to high understanding of securities markets.
The survey by research firm Kantar also flagged a large pool of potential entrants. Around 22 per cent of non-investors who are aware of securities products expressed intent to invest in the next year, suggesting strong scope for expanding the investor base if the hurdles are removed.
However, less than 1 percent of households have attended investor awareness programs, though demand for accessible education is high. Social media, mobile apps, and digital ads were the most preferred channels, while topics like fraud prevention, risk management, and investor rights ranked as the most sought-after.
Grievance cell
Awareness of SEBI’s grievance redressal system also remains limited — only 6 per cent of respondents were aware of its helplines and SCORES platform, though satisfaction levels among users were nearly 90 percent.
The regulator said the findings will guide policy to boost retail participation, particularly in smaller towns and rural areas, while strengthening investor protection and education initiatives.