UP takes lead in new investor registration in 2023 with 2.3 mn investors

About 16 million new investors entered the equity market in 2023 with Uttar Pradesh emerging at the top with 2.3 million new investor additions, according to data released by the National Stock Exchange. Uttar Pradesh, which saw a 34 per cent jump in investor count, left behind Maharashtra, which has traditionally been the biggest source of investors. The western state added 2.2 million new investors and remains the largest investor base with 14.9 million unique investors. Uttar Pradesh and Gujarat come in next with total investor count of 8.9 million and 7.7 million, respectively.

Investors' interest in the equity market went up in 2023, driven by the rally in small and midcaps, as well as the strong performance of initial public offerings (IPOs), which drew new investors into the equity market. In August, the demat account additions surged to a 19-month high of 3.1 million.

Experts attribute the growing investor count, especially in states with lower penetration, to growing awareness on equity investment, ease of investment due to digitisation and a rise in people's risk appetite.

Mutual funds have also seen a sharp surge in investor count post Covid-19. The unique investor count has doubled since March 2020 to 4 crore. The total number of investors now stands at 84.9 million with a year-on-year rise of 22.4 per cent.

In terms of percentage growth, Bihar, Chhattisgarh and Uttar Pradesh lead the pack among larger states. Bihar's investor count jumped 36.6 per cent to 3.4 million while Chhattisgarh’s rose 35 per cent to 0.98 million. Among smaller states, Mizoram's investor count surged 55 per cent in 2023 to 14,819. Nagaland, Lakshadweep, Dadar & Nagar Haveli and Arunachal Pradesh were other states that recorded over 40 per cent growth.