Unlocking India's Investment Potential: A Dive into Investor Habits

A recent survey from the Securities and Exchange Board of India (Sebi) has found that only 10% of Indian households invest in securities. This comes despite a high awareness rate of 63% about market products. The study highlights a significant gap between awareness and actual market participation.

Urban areas report a higher participation rate at 15%, while rural areas lag at just 6%. Delhi leads among Indian states with 20.7% household participation, followed closely by Gujarat at 15.4%. The survey stresses the importance of financial education, as only 36% of investors possess moderate knowledge about securities.

Risk-averse behavior, identified by 80% of respondents, particularly among Gen-Z, is a significant factor influencing investment choices. To encourage wider market participation, the survey highlights the need for simplified financial products, lower entry barriers, and more engaging educational content across various media, especially in regional languages.

(With inputs from agencies.)