120 mn Indians join equity markets: Veterans call it cultural shift in wealth creation

India’s equity markets are undergoing a transformation few could have imagined a decade ago. New data from the National Stock Exchange (NSE) shows over 120 million unique investor accounts are now active across 99.85% of the country’s pin codes. This forms part of a broader 235 million investor accounts, with women making up one in every four. Maharashtra leads with 19 million investors, but the surprise is Uttar Pradesh in second with 14 million, followed by Gujarat at 10.3 million. Veterans say this reflects a decisive shift in household savings and the mainstreaming of equity as an asset class.

At the India Today Conclave 2025, market leaders Madhu Kela, Nilesh Shah, and Pramod Gubbi unpacked the forces behind the shift, the risks ahead, and opportunities for a young investing nation. “In the last five years, India’s market capitalization has expanded from $1.2 trillion at Covid lows to $5.5 trillion today. Add gold holdings of $5–6 trillion, and we are looking at an $8 trillion wealth effect, largely owned by Indians,” said Madhu Kela, founder of MK Ventures. He stressed the transformation is cultural. “Five years ago, there were fewer than 20 million investors. Today, it’s 120 million. Equity investing looks like a culture now.”

Nilesh Shah, MD of Kotak Mahindra AMC, explained the change through the Kal, Aaj, aur Kal phenomenon. “Our grandfathers invested in provident funds, our fathers in PPF, and today’s generation embraces equities and startups. Real wealth is made by partnering with India’s best entrepreneurs.” He called Uttar Pradesh’s rise as the second-largest investor base “unimaginable two decades ago,” crediting financial literacy, technology, and higher real returns versus deposits.

The experts, though optimistic, cautioned against speculation, especially in derivatives. Shah noted: “Most traders are greedy. Competing against institutions with algos and capital is futile. People with money often lose money and only gain experience.”

Kela added the biggest risk is the investor’s time horizon. “If you want to get rich in six months, you’ll lose. But if you allocate sensibly, stay invested, and avoid leverage, equities will deliver superior long-term returns.”

Pramod Gubbi of Marcellus Investment Managers highlighted demographics. “With a median investor age of 33, there’s a 30-year runway to ride out volatility. SIPs are tailor-made for this.” He said India’s structural story is intact despite earnings slowdowns, high valuations, and global risks.

Technology is also reshaping investing. Gubbi pointed out AI enables research that once took 15 days to be done in 15 minutes. “It’s a productivity booster. For retail investors, though, mutual funds remain the best vehicle—less about skill, more about avoiding mistakes.”

On the industry’s complexity, Shah said simplicity is key: “For most investors, one product is enough—a multi-asset allocation fund. It provides equity, debt, and precious metals exposure and outperforms most portfolios.”

Despite volatility, all three agreed India’s markets will scale new highs. Kela recalled skeptics doubting his call for Sensex at 30,000 when it was 3,000. “It’s now 85,000 and will touch 1,00,000. The trajectory is clear: India is on an upward trend.”

Their message was clear: wealth creation comes not from quick gains but disciplined investing, diversification, and patience. As Shah summed up, “Risk and return go hand in hand. If you diversify and stay disciplined, you will grow and prosper.”