SEBI finds 9 in 10 Indians skip markets despite knowing them: What’s holding them back?

Despite a surge in awareness, India's retail investment story is still in early innings. According to the SEBI Investor Survey 2025, while 63% of Indian households—around 213 million—are aware of at least one securities market product, only 9.5% are actually participating. That’s just over 32 million households with any real stake in mutual funds, stocks, ETFs, or bonds.

Commissioned by SEBI in collaboration with AMFI, NSE, BSE, NSDL, and CDSL, and conducted by Kantar, the nationwide survey reached over 90,000 households across 1,400 cities and villages, making it one of the largest household investment surveys ever done in India.

Key points

• Urban-Rural Divide: Urban participation sits at 15%, while rural lags behind at 6%. Delhi (20.7%) and Gujarat (15.4%) are ahead of the curve.
• Knowledge Gaps: Only 36% of investors claim moderate to high knowledge of the markets.
• Risk Aversion Reigns: 80% of all households—and a surprising 79% of Gen Z households—prefer capital preservation over returns.

What's holding them back?

• Perceived Complexity: Products are seen as too technical.
• Lack of Trust: Fear of fraud and loss dominates investment reluctance.
• Barriers to Entry: New investors—or “intenders”—want simpler platforms, easier processes, inspiring role models, and fewer friction points.
• Education Needs: One Size Doesn’t Fit All
• Gen Z prefers bite-sized content: reels and short-form videos dominate.
• Older users lean on podcasts, long-form content, and workshops.
• Regional language content is in demand across demographics.

Only 22% of non-investors plan to join soon

This shows clear headroom: nearly a quarter of aware non-investors plan to start investing within a year—but only if the system becomes simpler, more transparent, and more trustworthy.

Though awareness is high, converting that into real investor participation requires building trust, simplifying digital journeys, and scaling up regional-language investor education. The findings are set to shape regulatory and outreach strategies for a more inclusive capital market.