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SEBI investor survey: Why out of 33.72 cr Indian households, only 3.21 cr invest in securities market

The low percentage of household participation in the securities market comes despite a multifold increase in market capitalisation and assets under management (AUM) in the last 10 years

4 min readMumbaiUpdated: Jan 27, 2026 04:33 AM IST

SEBI's survey said, 'Currently, about 6.7 per cent of Indian households report holding mutual funds or exchange-traded funds (ETFs), and approximately 5.3 per cent hold direct equities, which clearly indicates that participation in market-linked instruments is limited'. (Photo: Reuters)

Out of India’s 33.72 crore households, only 3.21 crore, or 9.5 per cent, have investments in products like equities, mutual funds, and corporate bonds, according to an investor survey by the Securities and Exchange Board of India (SEBI).

This leaves around 30.51 households still outside the securities market, signalling a significant under-penetration.

The low percentage of household participation in the securities market comes despite a multifold increase in market capitalisation and assets under management (AUM) in the last 10 years, the survey highlighted.

BSE equity market capitalisation has surged from around Rs 101 lakh crore in FY2014–15 to nearly Rs 4,701 lakh crore by October 2025. During the same period, mutual fund assets under management expanded from Rs 12 lakh crore in 2015 to Rs 79 lakh crore in September 2025.

Variation in awareness level

Awareness of securities market products remains concentrated around established instruments, with mutual funds/exchange traded fund (ETF) (53 per cent) and listed equities (49 per cent) being the most widely recognised securities market products among households.

“Currently, about 6.7 per cent of Indian households report holding mutual funds or exchange-traded funds (ETFs), and approximately 5.3 per cent hold direct equities, which clearly indicates that participation in market-linked instruments is limited,” the survey showed.

The survey said that household awareness of complex securities market products such as corporate bonds, futures and options, Real Estate Investment Trusts (REITs)/ Infrastructure Investment Trusts (InvITs) and Alternative Investment Funds (AIF) remains limited. While F&O are recognized by 13 per cent of households, household penetration of this complex product is less than one per cent.

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Geographic location plays a substantial role in shaping awareness patterns, it said. Urban households report 74 per cent awareness of at least one securities product, compared with 56 per cent in rural areas. The penetration is highest in the top nine metros at 23 per cent, followed by 10–40 lakh towns (16 per cent) and 5–10 lakh towns (14 per cent).

Securities market participation is highest in economically advanced and urbanised states. Delhi leads with 21 per cent, followed by Maharashtra at 17 per cent, Goa at 16 per cent and Gujarat at 15 per cent. The lowest participation is seen in Nagaland at 3 per cent, Uttarakhand and Meghalaya at 4.5 per cent, indicating information gaps in smaller states.

The findings showed that younger cohorts exhibit higher awareness of securities market products, with Gen Z at 66 per cent and millennials at 62 per cent, compared to 56 per cent among Gen X and older groups.

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“The untapped majority — individuals who are yet to participate in securities market products — represents a vast opportunity to redefine financial inclusion and unlock new avenues for economic growth,” the survey said.

Roadblocks to investing

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For non-investors, the top three major entry barriers for financial markets are complexity and information gaps, concerns about risk and return, and trust and transparency issues.

Complexity and lack of accessible information affect 74 per cent of non-investors. Within this group, key barriers highlighted by non-investor households are not knowing how financial products work, especially among non-investors in stocks and shares.

Fear of losing money due to market volatility is the most significant factor, specifically for stocks and shares. Uncertainty about returns and performance also discourages non-investor households from investing in securities market products.

“Trust and transparency issues affect 51 per cent of non-investors, with many expressing a lack of confidence in financial products or institutions,” the survey showed.