OUT OF India’s 33.72 crore households, only 3.21 crore, or 9.5%, have investments in products like equities, mutual funds, and corporate bonds, according to an investor survey by the Securities and Exchange Board of India (SEBI). This leaves around 30.51 crore households still outside the securities market, signalling a significant under-penetration.
The low percentage of household participation in the securities market comes despite a multifold increase in market capitalisation and assets under management in the last 10 years, the survey highlighted. BSE equity market capitalisation has surged from around Rs 101 lakh crore in FY15 to nearly Rs 4,701 lakh crore by October 2025. During the same period, MF assets under management expanded from Rs 12 lakh crore in 2015 to Rs 79 lakh crore in September 2025.
Awareness of securities market products remains concentrated around established instruments, with MFs/exchange traded fund (ETF) (53%) and listed equities (49%) being the most widely recognised securities market products among households.
“Currently, about 6.7% of Indian households report holding mutual funds or exchange-traded funds (ETFs), and approximately 5.3% hold direct equities, which clearly indicates that participation in market-linked instruments is limited,” the survey showed.
The survey stated that household awareness of complex securities market products such as corporate bonds, futures and options, Real Estate Investment Trusts (REITs)/Infrastructure Investment Trusts (InvITs) and Alternative Investment Funds (AIF) remains limited. While F&O are recognised by 13% of households, household penetration of this complex product is less than 1%.
Geography plays a substantial role in shaping awareness patterns. Urban households report 74% awareness of at least one securities product, compared with 56% in rural areas. The penetration is highest in the top nine metros at 23%, followed by 10–40 lakh towns (16%) and 5–10 lakh towns (14%).
Delhi leads with 21%, followed by Maharashtra at 17%, Goa at 16% and Gujarat at 15%. Nagaland (3%), Uttarakhand and Meghalaya (4.5%) recorded the lowest participation.
About Leadership & Organisation
Learn more about Ranjit Jha (CEO)
Explore insights and investor perspectives from Rurash Financials