The Securities and Exchange Board of India (“SEBI”), in collaboration with the Association of Mutual Funds in India (“AMFI”) and the Market Infrastructure Institutions (NSE, BSE, NSDL and CSDL) has released the Investor Survey 2025 (“Investor Survey”), one of the largest household surveys conducted in India to study investor participation and awareness levels.

Background

The Investor Survey, commissioned by SEBI, covered over 90,000 households in 400 cities and 1,000 villages, capturing insights from numerous people including investors, non-investors, market intermediaries and other stakeholders. The initiative aimed to assess the current extent of market participation, identify behavioural and investing trends, evaluate the effectiveness of investor education, and find out the barriers that continue to limit investor participation in the securities market.

Key Findings

1. 63% of Indian households, representing approximately 213 million people, are aware of at least one securities market product such as mutual funds, ETFs, shares, or bonds.

2. Actual participation in the securities market remains significantly lower at around 9.5% or 32.1 million households.

3. Urban and Rural participation stands at 15% and 6% respectively, with Delhi and Gujarat recording the highest levels of investor activity.

4. Notably, only 36% of investors were found to possess high or moderate knowledge of securities market products, which indicates the need for financial literacy and awareness.

5. Nearly 80% of Indian households prefer capital preservation over higher returns, and this approach extends even to Gen-Z households, 79% of whom display similar behaviour of avoiding risk.

6. The primary deterrents to investment include lack of knowledge, perceived complexity of investment market, and fear of losses of the investment.

7. Interestingly, a significant section of non-investors, have expressed a willingness to invest within the next year, provided that the investment process is simplified and more relatable.

Investor Education and Communication Trends

The Investor Survey notes that investors increasingly prefer financial education delivered through digital and social media platforms. Short-form video tutorials are the most favoured formats among younger investors, whereas older participants prefer articles, podcasts, and workshops. There is a consistent preference for investor education in regional languages across all demographic groups, highlighting the importance of inclusive communication strategies.

Implications and Way Forward

The Investor Survey underscores a strong intent among investors to participate more actively, with 22% of non-investors who are aware of securities market products indicating plans to invest within the next year. To extend market participation to this section of people, the Investor Survey identifies key focus areas of building investor trust, simplifying processes and expanding financial literacy in regional languages.

For all market participants, including Investment Advisors (IAs) and Research Analysts (RAs), these findings provide valuable insights into the investor behaviour and communication preferences. The Investor Survey thus serves as an important reference point for all stakeholders seeking responsible investing and greater inclusivity in the market.