According to a recent survey conducted by the Securities and Exchange Board of India (SEBI), only 10% of households in India engage in investing in securities. Surprisingly, a substantial 63% of the population possesses some awareness of financial market products. This stark contrast sheds light on the investment landscape in the country, highlighting the challenges faced by investors.
Digital Desk, New Delhi. The findings from the SEBI survey indicate that merely 10% of families across India are involved in securities investments, despite the fact that 63% are aware of at least one financial market product. This data underscores the disparity between awareness and active participation in the securities market.
The survey further reveals that investment activity is more pronounced in urban areas, where 15% of families invest, compared to a mere 6% in rural regions. Among Indian states, Delhi stands out with the highest percentage of investor families at 20.7%, followed by Gujarat, where 15.4% of households are engaged in the financial markets.
Securities encompass various financial instruments, offering investors the opportunity to allocate funds into companies or government entities, thereby earning returns on their investments. This category includes shares, bonds, and mutual funds, which are essential components of the broader financial ecosystem.
Limited Knowledge of Securities Market Among Investors
The survey findings indicate that only 36% of Indian investors possess a moderate understanding of the securities market. Notably, a significant 80% of families express a preference for capital preservation over pursuing high returns. This cautious approach is particularly evident among Generation Z families, with 79% prioritizing capital protection. SEBI has identified several barriers to broader market participation, including the complexity of investment products, insufficient information, a lack of trust, and fear of potential losses.
Extensive Survey Sample Across India
Conducted across a vast demographic, the SEBI survey included feedback from over 90,000 families spanning 400 cities and 1,000 villages. The research encompassed opinions from investors, non-investors, potential investors, and intermediary units, providing a comprehensive view of the investment climate in India.
Youth Turn to Digital Platforms for Financial Literacy
The report highlights that digital media, mobile applications, and short-form videos have gained immense popularity among the youth for financial education purposes. In contrast, older individuals tend to favor traditional resources like articles, podcasts, and workshops. SEBI emphasizes that the insights from this survey will play a crucial role in fostering a more inclusive securities market by focusing on education, building trust, and enhancing awareness in local languages.
