The number of intenders could be as high as 39.7 million, according to calculations by Mint based on data from the survey. The study found that 22% of non-investors who are aware of securities market products have expressed interest in investing in the future. This, it said, represents significant opportunities to expand the country’s investor base.
The Investor Survey 2025 was carried out by Kantar in association with the Securities and Exchange Board of India, Association of Mutual Funds in India, National Stock Exchange of India, BSE, National Securities Depository Ltd and Central Depository Services Ltd and released in September. It covered 90,000 households nationally across 400 cities and 1,000 villages. The sample size was extrapolated to a household population of 337.2 million.
According to the survey, intenders represent aspiring investors, eager to participate but often held back by barriers such as complexity, onboarding difficulties, or gaps in financial education.
Among the total households, only 32.1 million—or 9.5%—had invested in at least one securities market product. About 180.4 million—or 53.5%—were aware of securities market products but had not invested, and the intenders belong to this group. The remaining 37% were unaware of investment products.
Intenders accounted for 22% of the 180.4 million cohort, or 39.7 million, Mint calculated.
Among the intenders, broadly 73% want easy options for investments. Of them, 41% are looking for simpler onboarding, an equal number want intuitive digital interfaces, and 38% cited the need for easier access to financial education (respondents could choose multiple preferences). The message was clear: interest is high, but participation is still daunting for many.
Keeping it simple
“Brokers, AMCs (asset management companies), and fintechs are partly ready on scale but not simplicity,” said Paramdeep Singh, an early investor in fintech startups and founder of investment vehicle Long Tail Ventures. “With 73% of intenders citing complexity as a barrier, the next breakthrough will come not from new products but from design thinking—making investing as intuitive as UPI.”
While the market’s digitization has set the stage, with low-ticket systematic investment plans (SIPs), vernacular apps, and goal-based tools now standard, simplicity hasn’t fully caught up with access. Making small-value investing viable will require a sharper focus on cost structures.
“To make low-value investments viable, the cost of KYC, settlement and distribution must fall sharply,” said Ajay Kejriwal, executive director at Choice Equity Broking. He added that intenders are looking for one-tap eKYC, UPI-based funding, ₹100 SIPs, and even fractional equity—features that require rethinking operational costs.
This influx of prospective investors will add to India’s already high level of retail participation in the stock markets. The total number of dematerialised accounts—needed by investors to buy and sell securities—crossed 207.1 million this year, up from 40.8 million in FY20, a fivefold increase in five years.
The trend signals a democratization of India’s capital markets. The lure of the equity market remains strong, with particular popularity for derivatives trading and investing in initial public offers, which stand out as entry points for many new investors.
Yet, rising enthusiasm is shadowed by steep trading losses, notably in the derivatives segment. In FY25, 9.6 million traders who participated in the equity derivatives segment lost ₹1.05 trillion, according to a survey conducted by Sebi in July 2025. This followed a survey in 2024, which showed that 91% of individual traders ended up in the red.
High-risk investing
The July survey was conducted after Sebi tightened norms for investing in derivatives in October 2024 and May 2025. Still, the losses persisted, raising questions about the effectiveness of the new regulations.
Vipul Bhowar, senior director at Waterfield Advisors, advocated stronger gatekeeping by the market regulator.
“Sebi should not allow investors with less than 10 years of experience to trade in derivatives,” he suggested. A ₹50-lakh minimum demat balance or mandatory certification could ensure only knowledgeable investors participate, Bhowar added.
Experts advised intenders to stay out of high-risk trades until they gain adequate market experience. Brokerages recommend starting with safer options, like mutual funds.
“Derivatives were made for hedging, not trading. It’s become a zero-or-hero game. If new investors enter the derivatives market, they should be aware of the risks. If not, they should invest in mutual funds,” said Govind Goel, assistant manager at Zerodha.
The concerns over derivatives trading reinforced the urgent need for robust investor education, especially with regard to where intenders turn to for information.
The Sebi survey shows 57% rely on social media financial influencers, many of whom are seen as credible. This dependency brings new risks in an era of AI-driven misinformation. Social media, mobile apps and TV/digital advertisements are the preferred modes of receiving financial education, the survey’s findings showed.
“A dangerous cocktail emerges when you consider new and inexperienced users with limited financial knowledge and fewer reliable sources of truth,” said Nishant Shah, CEO of Affinis by Jonosfero. With India’s 659 million smartphone users, “the fabrication and dissemination of financial misinformation via AI and social media is becoming laughably easy.”
Despite these worries, experts are confident that India’s market can accommodate the new wave of investors and believe the impact will be positive.
Resilient market
“A large influx of retail participants will broaden liquidity rather than strain it. In the near term, we may see some volatility in speculative pockets, but over the long term, a democratized investor base makes the market resilient and less dependent on foreign institutional inflows,” said Narinder Wadhwa, managing director and CEO of SKI Capital Services Ltd.
The IPO market has played a key role in drawing newcomers. The average subscription of retail investor quotas in 2025 was 26.99 times, compared with 33.71 times in 2024, according to Prime Database. While the data indicates a drop with enthusiasm cooling slightly, retail interest in IPOs is still strong and they remain a gateway for new investors.
“The excitement of owning a piece of India’s growth story is what draws people into equities,” said Wadhwa. “If post-listing performance and governance remain strong, IPOs can turn one-time investors into long-term shareholders.”
However, experts said that IPOs should be seen as means to wealth creation through ownership, not just opportunities for quick gains. The focus should now be on accessibility, not just innovation.
“The next investing wave is about simplification—innovation can follow,” noted Ashish Padiyar, managing partner of Bellwether Associates. “Stronger digital literacy, verified advice and stricter influencer norms are essential to prevent enthusiasm from becoming exploitation.”
As former BSE chairperson S. Ravi and founder of Ravi Rajan & Co pointed out, the challenge lies in directing capital toward sustainable vehicles while ensuring simplification does not come at the cost of sound risk assessment.
