India has been witnessing a remarkable surge in the number of new demat accounts, with 30 million being opened annually since 2021. Notably, one in four new investors is a woman, signaling a growing trend of financial inclusion and capital market participation, according to a report by SBI Research released on Monday.
The total number of demat accounts in India crossed 150 million in FY24, a significant rise from just 22 million in FY14. The report forecasts that the number of new accounts could reach 40 million this year. Female participation in the markets has also risen significantly, with states like Delhi (29.8%), Maharashtra (27.7%), and Tamil Nadu (27.5%) showing higher female investor representation than the national average of 23.9%.
The research highlights a growing trend of younger investors entering the market, with a decline in the average age of investors and an increasing number of individuals under 30. This shift is attributed to technological advancements, lower trading costs, and greater access to information.
SBI Research also notes that mutual funds have become the preferred investment vehicle for Indians, with Systematic Investment Plans (SIPs) growing fourfold since FY18. The capital raised by Indian companies through equity markets has more than tenfold increased in the past decade, contributing significantly to the country's financial landscape.