How much percentage of people in India invest in share market

3.23 crore accounts are listed with securities trade. If we consider India’s workforce as 48.18 crore (source censusindia.gov.in) then less than 7% of India’s population is investing in stocks.

As a state, Maharashtra tops the involvement with more than one fifth followed by Gujarat, Tamil Nadu, West Bengal and UP. These five states contribute to 60% of trading in India.

This percentage is very low as compared to other developed nations. 11% of Chinese and 18% of Americans trade securities.

What is Intraday Trading in share market?

India has a population of around 1.2 billion, out of which only 20-25 million people invest in shares or mutual funds. Only 2% people of india are joined with share marketing.It identified 3.23 crore registered stock market investors in total. We have touched only 2% of India and we have to reach the remaining 98%.

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.