10% households invest in markets: Survey

MUMBAI: Less than one out of 10 households in India (9.5%) invest in securities market-related financial products like stocks and mutual funds , a Sebi survey showed. This is despite 63% of the country’s total 33.7 crore households knowing about at least one of these products.

Among states, nearly 21% of households in Delhi invest in securities market products, followed by 17% in Maharashtra. With 4.5% stock-related investing households, Uttarakhand has the lowest penetration among states. The survey also found that at all-India level, mutual funds with 6.7% penetration among households beat stocks at 5.3%.

Other products like F&O, REITs/InvITs, and corporate bonds have less than 1% penetration. “Nearly 80% of households prefer capital preservation over higher returns (and) 79% of Gen-Z households also display risk-averse behaviour,” the survey showed.

The nationwide survey was commissioned by Sebi, along with Amfi, BSE, NSE and other market infrastructure institutions.