What percentage of Indians invest in stock market?

Short Answer

There are about 89.7 million active demat accounts as of 31st March 2022, i.e., about 5-6 percent of Indians invest in stock market. Let's gather some more details on the percentage of Indians actually putting their money in the share market.

Detailed Answer

India has a long history of linking stock market investment to gambling. Despite lower annual returns, people still prefer to keep their money in banks as opposed to investing in the stock market.

What percentage of Indians invest in Stock Market?

According to data from the Securities and Exchange Board of India (SEBI), the nation's total number of demat accounts surpassed 100 million on August 31, 2022. There were a total of 100.51 million demat or investor accounts with the two National Depositories, comprised of 71.16 million investor accounts with CDSL and 28.9 million with NSDL.

However, the number of active demat accounts in India as of 31st March 2022 was 89.7 million which means hardly 5-6 percent of Indians invest in the stock market.

Why most Indians do not invest in stocks?

There are many reasons, like :

1. Poor Financial Literacy:

Most people are unaware of the benefits of long-term investments and the benefits of compounding.

2. Traditional Investments:

People prefer to invest in gold and FDs because they are not ready to take risks and consider these as safe investments.

3. Myths about the Stock Market:

Many movies and web series have created fear among the people and equate the stock market to gambling.

4. Lack of desire for risk:

Returns are always proportional to risk , but most people avoid it and that's why they don't invest in the stock market.

Percentage of Indians Investing in Stock Market

In India, there are very few active investors; instead, those who do invest are typically large investors or corporate figures. All of this is the result of inadequate financial literacy and stock market myths. Do you think or plan to invest in the Indian stock market?

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