Let us first know about the equity market. Equity market or stock market is that market where shares of companies are traded and issued sometimes through exchange or the over-the-counter markets. Needless to mention, it is one of the most vital areas of the market economy though it is sometimes very risky. The equity market plays a very effective role in the market economy by providing liquidity, investment options, and raising.
Coming to India, it is to be noted that hardly 2%of the population of Indians only invests in the market with the most majority fr Maharashtra and Gujarat. Comparing the participation of Indians in the stock market with the globe, then we will see that India's participation is below average. Despite what it makes worry about the participation of Indian investors in the stock market is the minimal growth. The percentage of participating investors in the market currently is the same as three decades earlier that is in the 1990s this is because of the following reasons like
1.Unawareness:- most people are completely unaware of equity marketing. They have no idea how much can be returned by investing in the market. This is probably the biggest reason why we Indians don't invest in stocks.
2.Myths:- It is the biggest myth that the stock market is considered to be gambling in India. Some myths about equity marketing have been a reason why the percentage of involvement is below average.
3. No security in exchange:- Though there are scams everywhere and in areas that have witnessed few scams, the Indian stock market has been scandalized by people like Harshad Mehta and Ketan Parekh.
4. No knowledge:- they have no idea in this field. They don't know from where to start, on which platform they should invest and how much to invest. There is no platform to know all these facts.
5.Lack of capital:- Being a poor country where a majority of the people struggle hard to meet their basic needs, how can they invest in the stock market?
So these are the most important and probable reasons why Indians don't invest in the stock market.