How much percentage of people in India invest in share market

In India, the participation of people in the share market is still relatively low compared to many developed countries, but it is slowly increasing every year.

According to the latest SEBI Investor Survey 2025, only about 9.5% of Indian households currently invest in securities markets such as stocks, mutual funds, bonds, and other market-linked instruments. This means that roughly 1 out of every 10 households in India is actively participating in the stock market.

The survey also shows that around 63% of households are aware of stock market products, but awareness does not always convert into actual investing. Many people still prefer traditional saving methods like fixed deposits, gold, insurance, or real estate because they feel safer and less risky.

There is also a big difference between urban and rural areas. In cities, participation is higher (around 15% or more), while in rural areas it is much lower. Financial literacy, fear of loss, lack of trust, and complexity of the market are some of the main reasons why many people still stay away from investing.

Another important point is that even though only a small percentage of households invest directly in the stock market, the number of investors is growing fast. The rise of digital trading apps, mutual funds SIPs, and financial awareness campaigns has made investing easier than before. Many young people are now entering the market compared to previous generations.

In conclusion, the share of Indians investing in the stock market is still small—around 9–10% of households—but it is steadily increasing. With better education, awareness, and digital access, this percentage is expected to grow significantly in the coming years as more people shift from traditional savings to modern investment options.

 A 2018 CNBC report states;

Domestic institutions, armed with funds from small and medium investors, have also spent almost 80 percent more on Indian stocks in 2018 than foreign portfolio investors, industry data showed. Even the current correction in the market has been stemmed as domestic investors continue to buy while the foreign institutions exit owing to global headwinds, said experts.
The changing habits of the formerly risk averse middle class in India, far from the financial capital of Mumbai, have caused quite a rally in the country’s stock market: Its benchmark Sensex index soared 28 percent year on year in 2018.
Indian equity markets have evolved substantially in the last 20 years in terms of risk management, settlement cycles, efficiency of operations, etc. However, retail participation is still fairly low, albeit it is picking up through the equity mutual funds route. Indian investors are veering around to the view that only equities can generate wealth for them in the long run.

A survey by Geojit shows that retail investors in equities have become more mature in the way they invest.

But some misconceptions regarding risk and returns persist. Excerpts from the survey findings.


I. Most investors invest in stocks when they have surplus funds
This is a good sign and shows that investors are aware of the risks that stock markets entail.

How often do you invest in stock markets?
Less than 2% get lured to invest when markets are up.

When funds are surplus 59.3%

Less than 2% get lured to invest when markets are up.

When funds are surplus 59.3%

Direct stocks 83.4%
Mutual funds 57.2%
Day trading 14.6%
Futures and options 4.8%
All of the above 5.8%

Thanks for the patience while reading through the figures.