The impact of this influx of individual investors is evident in new investor registrations, their share in total traded value, net investments, and ownership in listed companies. Retail investors’ share in the equity cash segment turnover reached 35.9% in FY24.
The survey attributes the rise in investors during the pandemic and beyond to seamless technological integration, government measures for financial inclusion, digital infrastructure growth, rapid smartphone penetration, the emergence of low-cost brokerages, the pursuit of alternative income sources, and lower returns from traditional assets like real estate and gold.
Apart from direct investment, retail participation has also grown substantially through mutual funds. The number of folios increased from 146 million at the end of FY23 to 178 million at the end of FY24, while mutual fund assets under management grew by Rs 14 lakh crore to Rs 53.4 lakh crore, a 35% increase.
A favourable economic environment with lower interest rates, sustained post-COVID-19 recovery, elevated inflation, and supportive policies also boosted retail capital market investments, the survey stated.The mutual fund segment currently has about 8.4 crore systematic investment plans (SIPs). Annual net SIP flows have doubled in the last three years, from Rs 1 lakh crore in FY21 to Rs 2 lakh crore in FY24.The survey also indicates that retail investors have been reinvesting their financial market gains into real assets. Continuous investor awareness programs focusing on investor rights and responsibilities have also contributed to the growth of individual participation in securities markets, according to the survey.