SEBI survey: Why just 3.21 cr Indian households invest in securities markets, Pg11

Key Highlights:

• Only 9.5% (3.21 crore) of India's 33.72 crore households invest in securities markets.
• BSE equity market capitalization increased from Rs 101 lakh crore in FY15 to Rs 4,701 lakh crore by October 2025.
• Mutual Fund assets under management grew from Rs 12 lakh crore in 2015 to Rs 79 lakh crore in September 2025.
• Awareness of Mutual Funds/ETFs is at 53% and listed equities at 49% among households.
• Urban households show 74% awareness of securities products, compared to 56% in rural areas.
• Delhi leads with 21% household participation, while Nagaland has the lowest at 3%.

Detailed Insights:

• Despite significant growth in market capitalization and assets under management, a large portion of Indian households remain outside the securities market.
• Awareness of complex products like corporate bonds, futures and options, REITs/InvITs, and AIFs is limited among households.
• Futures & Options (F&O) are recognized by 13% of households, but penetration is less than 1%, indicating a gap between awareness and participation.
• Geographical location significantly impacts awareness, with higher penetration in metros and urban areas compared to rural regions.
• The top nine metros have a securities market penetration of 23%, while towns with 10-40 lakh residents have 16% and 5-10 lakh residents have 14%.
• States like Maharashtra, Goa, and Gujarat show higher participation rates compared to Uttarakhand and Meghalaya.

Key Concepts Involved:

• Securities Market: A platform where buyers and sellers trade financial instruments like stocks, bonds, and mutual funds.
• Market Capitalization: The total value of a company's outstanding shares, calculated by multiplying the share price by the number of shares outstanding.
• Assets Under Management (AUM): The total market value of the investments that a financial institution manages on behalf of its clients.