New Delhi: India’s long march from a nation of savers to one of investors has gathered pace over the past decade, but the journey remains uneven and incomplete.
The SEBI Investor Survey 2025, one of the most extensive studies of household financial behaviour undertaken in India, offers a detailed snapshot of this transition—highlighting strong gains in awareness and access, while underlining the structural and behavioural barriers that still keep millions away from the securities market.
Covering nearly 92,000 households across urban and rural India, the survey finds that 63% of households—around 21.3 crore—are now aware of at least one securities market product. This marks a significant expansion of financial familiarity compared with a decade ago, driven by rapid digitalisation, policy-led formalisation and the explosive growth of fintech platforms.
Yet awareness has not translated proportionately into participation. A majority of households continue to prefer traditional savings instruments such as fixed deposits, insurance, gold and real estate, reflecting deep-rooted risk aversion and limited understanding of market-linked products.
The urban–rural divide remains stark. While 74% of urban households report awareness of securities products, the figure drops to 56% in rural India. In the top metros, awareness climbs as high as 89%, underscoring the role of proximity to financial infrastructure, intermediaries and digital connectivity.
Education and income emerge as decisive factors. Postgraduates and graduates show awareness levels above 80%, compared with sharply lower levels among less educated groups. Similarly, households in the top socio-economic bracket (NCCS A) report awareness of 84%, nearly double that of lower NCCS categories.
The survey also flags a persistent gender gap. Only 58% of women report awareness of securities products, compared with 66% of men—an imbalance that cuts across age groups and income classes and points to the need for more targeted financial literacy initiatives.
Among securities products, mutual funds and ETFs enjoy the highest recognition, with 53% awareness, followed by equities at 49%. Awareness of more complex instruments—derivatives, REITs, corporate bonds and alternative investment funds—remains in single digits, suggesting that India’s retail investor base is still concentrated at the shallow end of the market.
This pattern reflects both supply-side and behavioural constraints. While digital platforms have simplified access to equities and mutual funds, product complexity, fear of loss and limited advisory support continue to deter households from diversifying further.
The survey situates these trends within a broader macro transformation. Over the last decade, India’s securities markets have expanded dramatically, with equity market capitalisation rising from about ₹101 lakh crore in FY15 to nearly ₹470 lakh crore by October 2025, and mutual fund assets swelling more than six-fold.
Public digital infrastructure—Aadhaar-based e-KYC, UPI, account aggregation and video KYC—has lowered entry barriers and reduced transaction costs. Fintech platforms and discount brokerages have brought first-time investors, particularly younger cohorts, into the market at scale.
Gen Z and millennials report higher awareness than older cohorts, signalling a generational shift in financial attitudes. However, the survey cautions that ease of access must be matched by stronger investor protection and education, especially as mobile-first investing increases exposure to misinformation and high-risk trading behaviour.
One of the survey’s most significant findings is the emergence of a large cohort of “intenders”—households that are aware of securities products and express an intention to invest within the next year. This group represents a potential inflection point for market deepening, provided regulatory and industry efforts can convert intent into sustained participation.
For SEBI, the data reinforces the importance of targeted interventions: simplifying processes, strengthening grievance redressal, expanding local-language education and building trust in intermediaries. The regulator’s renewed focus on investor education programmes, SCORES 2.0 and online dispute resolution is aimed squarely at addressing these gaps.
Taken together, the SEBI Investor Survey 2025 paints a picture of cautious optimism. India’s financial markets are no longer niche or elite, but genuinely mass-facing. Yet the transition from awareness to action remains constrained by risk perception, uneven literacy and socio-economic divides.
For policymakers and market participants alike, the message is clear: the foundations of participation are in place, but the next phase of growth will depend less on access and more on confidence. Bridging that final gap may well determine whether India’s investing revolution reaches its full potential.