19 august 2024 : A report from the National Stock Exchange (NSE) indicates that the increase in digitisation, heightened investor awareness, and enhanced market accessibility have been pivotal in the rise of investor numbers.
In August, the Indian stock markets reached a notable achievement as the total number of registered investors surpassed the 10 crore threshold, as per the NSE report.
This milestone reflects the escalating interest and engagement of the Indian populace in equity markets, signifying a significant transformation in the financial environment.
The report highlights that the transition from 9 crore to 10 crore registered investors occurred within a mere five months, illustrating the swift influx of new investors into the market, with an additional one crore investors joining in an impressively short timeframe.
Various factors have fueled this increase in investor numbers. The report underscores that advancements in digitisation, greater investor awareness, and improved access to markets have all been instrumental in rendering the stock markets more inviting and accessible to a wider demographic.
Furthermore, the substantial returns generated by stocks in recent years, particularly following the pandemic, have further enticed new investors.
The report articulates, “A combination of rising digitisation, enhanced investor awareness, improved market access, and favorable performance relative to other asset classes has spurred increased market participation since the pandemic.”
Additionally, the report provides a historical perspective on this growth. It took the Indian stock market over 25 years to achieve its first crore of registered investors. However, the pace has significantly accelerated in recent years, especially with the influx of younger investors.
The report states, “Achieving a crore investor took over 25 years, but subsequent milestones have been reached much more rapidly, with new investors primarily in the 20-30 age group.”
This swift expansion signifies a wider movement towards financial inclusion and a change in investment choices among the youth of India, who are progressively embracing equities as a strategy for wealth accumulation. The stock markets, previously regarded as the realm of the financial elite, are now drawing a varied and younger audience, motivated by the potential for greater returns and the ease of access provided by digital platforms.