Retail Participation Reshapes Market Structure

• HDFC securities
• Thu

Rising Demat Accounts and SIP Flows Signal Structural Shift

Mumbai, April 8: Retail investor participation continues to play a central role in shaping Indian equity markets, with sustained growth in account openings and investment flows reinforcing long-term market stability.

Demat Account Growth Continues Unabated

The number of demat accounts has expanded sharply from around 14 million in FY08 to approximately 220 million in FY25, with projections nearing 230 million in FY26, according to HDFC Securities Head of Prime Research, Devarsh Vakil.

Speaking at the release of HDFC Securities Big Review here on Wednesday, he said that despite this growth, active investor participation remains relatively limited. Out of a registered investor base of 12.8 crore, only 1.48 crore investors were active as of February 2026. Within this, 1.09 crore investors were active in the cash market alone, while 20.89 lakh participated only in derivatives and 18.15 lakh were active in both segments.

SIP Contributions Maintain Upward Momentum

Systematic Investment Plan inflows have risen consistently over time. Monthly SIP contributions have increased from around ₹4,000 crore levels in early periods to over ₹30,000 crore, with recent peaks exceeding ₹31,000 crore.

The steady rise in SIP flows reflects increasing retail commitment to long-term investing, even during phases of volatility.

Younger Investors Drive Market Evolution

Vakil said that demographic trends show a rising share of younger investors. The proportion of investors below 30 years has increased from 22.6 per cent in March 2019 to 38.4 per cent in February 2026.

The 30–39 age group accounts for around 30 per cent of investors, while the share of investors aged 50 years and above has declined to near 15 per cent combined. Median investor age has reduced from 38 years to around 33 years over this period.

Gender participation has also improved, with female investor share rising from 22.5 per cent to 24.9 per cent.