Guwahati: Why are people not investing in securities markets such as mutual funds, shares, or bonds? A nationwide survey, commissioned by SEBI along with AMFI and market infrastructure institutions (NSE, BSE, NSDL, and CDSL), and conducted by Kantar, covering more than 90,000 households across 400 cities and 1,000 villages, reveals a strong risk-averse mindset: nearly 80% of households prioritise capital preservation over higher returns.
The survey was undertaken against the backdrop of rising investor participation and the expanding role of India’s securities market in mobilising and allocating funds. Its objectives were to assess current penetration and awareness levels, identify barriers and motivators for investors and non-investors, and evaluate the effectiveness of investor education and grievance redressal mechanisms.
The key deterrents include complexity, lack of knowledge, trust deficits, and fear of losses. Intenders (non-investors aware of securities products and intending to invest within the next year) seek simpler digital platforms, easier processes, success stories and role models, and lower entry barriers.
The Northeast continues to lag in securities market participation, with Meghalaya recording just 4.2% of households invested in financial products such as mutual funds, shares, or bonds—less than half the national average of 9.5%, according to the survey.
A state-wise snapshot reveals stark disparities. In the Northeast, Assam reported a 6.5% penetration, Arunachal Pradesh 7.9%, Mizoram 6.3%, and Tripura 5.3%. Meanwhile, Nagaland ranked among the lowest nationally at 3.4%. In contrast, Delhi (20.7%), Maharashtra (17%), and Gujarat (15.4%) lead the country.
The findings underline the persistent gap between awareness and participation in the region. While 63% of Indian households—approximately 213 million—are aware of at least one securities product, only 9.5% (32.1 million households) invest in them. Urban participation (15%) is more than double rural (6%), highlighting challenges in outreach to smaller towns and villages, including those in the Northeast.
The survey also shows 79% of Gen-Z households share this cautious outlook, contradicting assumptions about younger investors’ appetite for risk.
Only 36% of investors possess high or moderate knowledge of securities markets, highlighting the need for sustained financial education, the survey says.
For the Northeast, where financial literacy and infrastructure remain limited, barriers such as complexity, lack of trust, and fear of losses remain key deterrents. The survey stresses the need for simpler digital platforms, lower entry barriers, and local-language investor education campaigns to bridge the participation gap.
Social media and mobile apps emerged as the most preferred channels for investor education. While Gen-Z in the region prefers short-form videos and reels, older groups lean towards articles, podcasts, and workshops. Nearly half of respondents demanded investor education in Hindi and regional languages, while only 5% preferred English.
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