Retail Participation Continues to Reshape Market Structure

Rising Demat Accounts and SIP Flows Highlight Structural Shift

Mumbai, April 8: Retail investor participation remains a defining force in Indian equity markets, with sustained expansion in account ownership and consistent investment inflows reinforcing long-term structural stability.

Demat Account Expansion Remains Strong

The growth in demat accounts has been sharp and uninterrupted, rising from nearly 14 million in FY08 to about 220 million in FY25, with estimates approaching 230 million in FY26. According to HDFC Securities Head of Prime Research, Devarsh Vakil, this expansion reflects widening market access but does not fully translate into active participation.

Despite the large base of 12.8 crore registered investors, only 1.48 crore were active as of February 2026. Within this subset, 1.09 crore investors participated solely in the cash segment, while 20.89 lakh were active only in derivatives and 18.15 lakh operated across both segments.

SIP Flows Continue to Strengthen

Systematic Investment Plan inflows have maintained a steady upward trajectory. Monthly contributions have moved from roughly ₹4,000 crore in earlier periods to over ₹30,000 crore, with recent figures exceeding ₹31,000 crore.

This sustained rise indicates a gradual but clear shift towards disciplined investing behaviour, even during phases marked by market volatility.

Younger Investors Gain Prominence

Demographic patterns underscore a notable shift towards younger participation. The share of investors below 30 years has increased from 22.6 per cent in March 2019 to 38.4 per cent in February 2026.

Investors in the 30–39 age bracket now account for around 30 per cent of the base, while those aged 50 years and above have declined to nearly 15 per cent combined. Over the same period, the median age has reduced from 38 years to around 33 years.

Gender participation has also seen improvement, with the share of female investors rising from 22.5 per cent to 24.9 per cent.