Indian households, including Gen Z, remain risk-averse: Sebi survey

Indian households continue to prioritise safety over returns when it comes to investing, according to the Securities and Exchange Board of India’s (Sebi’s) 2025 Investor Survey.

 

The nationwide study, conducted across 90,000 households in 400 cities and 1,000 villages, highlights that nearly 80 per cent of families prefer capital preservation to higher, riskier gains. 

Interestingly, this cautious outlook extends to younger generations. Despite their digital fluency and rising access to investment platforms, 79 per cent of Gen Z households surveyed displayed risk-averse behaviour. 

The findings come at a time when financial markets are witnessing record participation from retail investors. Yet, the survey revealed that only 9.5 per cent of Indian households — around 32 million — are invested in securities market products, even though 63 per cent are aware of at least one such option. 

 

The penetration is higher in urban areas (15 per cent) compared to rural areas (6 per cent). 

Barriers to investment include fear of market losses, complexity of products, and trust deficits. Even those who plan to invest within a year pointed to the need for simpler digital platforms, transparent processes, and relatable role models. 

The findings suggest that for India’s equity culture to deepen, efforts must focus on financial literacy, regional language outreach, and demystifying risks — especially for Gen Z, who could shape the future of investing. 

“The survey identifies significant opportunities to expand the investor base, with 22 per cent of non-investors who are aware of securities market products and have expressed interest in investing in the future,” the report said.