'Don’t expect a retail wave': Saurabh Mukherjea says most Indians lack income to invest in stocks

India’s retail investing boom may not be as limitless as it seems, says Saurabh Mukherjea. In a candid podcast with INDMoney, the Marcellus Investment founder pushed back against the popular belief that a vast number of Indians are yet to enter the stock market—arguing instead that the growth story may already be nearing its peak.

“Only 6% of Indians invest in stocks—and that’s actually a good number,” Mukherjea said, referencing the latest RBI data. “Net household savings are at a 50-year low. That tells you how few people have formal employment and consistent prosperity. So 6% makes sense.”

According to Mukherjea, the bullish claim that stock market participation will skyrocket lacks economic grounding. “We have about 100 million Indians with reasonable, steady jobs. But we already have nearly 200 million demat accounts,” he pointed out. “Even after adjusting for people with multiple accounts, we’re looking at around 150 million unique individuals. That’s already more than the number of people who can afford to invest responsibly.”

He dismissed the “wait till the masses arrive” theory as outdated. “The idea that millions more Indians are yet to come into equities? I don’t think that number’s going to grow much,” Mukherjea said. “This narrative has no logical basis.”

More alarming was his warning about who these new investors are and how they’ve entered the market. “A lot of these people have overextended themselves financially—drawn in by excitement, apps, and bull runs,” he said. “They’ve stretched to get into the market. And when it crashes, they’ll get crushed. They’ll be under the truck.”

Mukherjea’s remarks come at a time when retail investor enthusiasm is still high, with record demat openings and booming online brokerage activity. But he urged caution, especially for those without steady income or emergency buffers. “Now’s the time to focus on financial safety for those already in—not cheer for a wave that may never come.”