Two-thirds of domestic households aware of securities products: Sebi survey

Nearly 63 per cent Indian households are now aware of at least one securities market product, but just 9.5 per cent have put in their money into it, a survey conducted by the market regulator Sebi said, highlighting a persistent gap between financial access and meaningful participation in capital markets.

 

The survey, conducted by Securities and Exchange Board of India (Sebi) covering 90,000 households across urban and rural India, said that only 32.1 million households, or 9.5 per cent, have invested in securities market products.

 

Awareness levels vary sharply across regions and demographics.

 

Urban households reported 74 per cent awareness, compared with 56 per cent in rural areas, underscoring the uneven spread of financial literacy, Sebi Investor Survey 2025 said.

 

 

In India’s top nine metros, awareness climbed to 89 per cent, reflecting deeper market penetration and better access to financial intermediaries.

 

Education and income continue to be strong determinants of market awareness. Postgraduates (86 per cent) and graduates (81 per cent) showed significantly higher familiarity with securities products than households educated up to Class 10, where awareness fell below 50 per cent. Similarly, households in the top socio-economic category (NCCS A) recorded 84 per cent awareness, while lower-income groups (NCCS C, D and E) lagged at 45 per cent.

 

Among the age groups, Gen Z -- those born between late 1990s and early 2010 -- reported 66 per cent market awareness.

Millennials -- those born between early 1980s and late 1990s -- showed 62 per cent. People of both the age groups reported higher awareness than Gen X -- those born between 1965 and 19780 -- and older cohorts.

 

Gender gap persists here too. 

 

66 per cent of men were aware of securities products against 58 per cent of women, suggesting that financial participation remains uneven despite wider digital access.

 

At the product level, awareness remains concentrated in a narrow set of instruments.

 

Mutual funds and exchange-traded funds were recognised by 53 per cent of households, while equities were known to 49 per cent. In contrast, awareness of more complex or newer instruments remains limited-- futures and options were recognised by 13 per cent, REITs and InvITs by 10 per cent, and alternate investment funds by just 6 per cent.

 

By comparison, traditional savings instruments continue to dominate household familiarity. Fixed deposits and life insurance enjoy near-universal awareness, while post office savings schemes and physical gold remain far more widely recognised than market-linked products.

 

The survey, which covered over 90,000 households across urban and rural India, also found wide inter-state disparities. States such as Maharashtra, Tamil Nadu, Karnataka and Delhi ranked among the highest in awareness, while Uttar Pradesh, Bihar, Jharkhand and several north eastern states were at the lower end of the spectrum.

 

Sebi said the findings underline the need for targeted investor education and simplified access to market products, particularly in rural areas and among lower-income households.

 

While digital platforms and fintech have expanded reach, the regulator noted that awareness has not yet translated proportionately into participation, leaving a large pool of potential investors untapped.

 

The regulator plans to use insights from the survey to fine-tune investor education programmes, strengthen grievance redressal mechanisms, and bridge the gap between awareness and actual investment participation, the report said.