The Indian Market Participation Paradox: From Awareness To Entry And From Entry To Dormancy In Market-Linked Investments
Himanshu Jee, Amity University Noida, Uttar Pradesh
ABSTRACT
The securities market in India has expanded rapidly yet more than half of Indian households still remain outside the financial market. People know about investment opportunities yet only a small number actually invest in them and their entry into the market does not guarantee ongoing financial commitments. The researchers evaluate the research gap through three different phases which include awareness through first-time entry through ongoing participation. The study uses the Securities and Exchange Board of India Investor Survey 2025 to collect household data, and it uses mutual fund information from the Association of Mutual Funds in India AMFI. SEBI reports that about 63% of households are aware of at least one securities market product while only 9.5% participate. The existing gap between two groups shows that people need to have more knowledge before they can start investing. Households decide to invest and stay invested based on their income and trust level and understanding of risks and ability to get financial advice and comfort with digital technology and previous investment experience and market losses.
The paper develops a framework for studying these barriers and proposes questions for further research. It does not claim to have conducted a household survey or estimated original statistical results. The argument states that investor inclusion must be evaluated through two criteria which include the number of new accounts and folios and the achievement of informed decisions and appropriate product selection and ongoing involvement by investors.
1. INTRODUCTION
India's securities market has experienced substantial growth throughout the last ten years because digital financial systems and simplified account opening procedures and rising mutual fund usage and increasing popularity of systematic investment plans (SIPs) have contributed to its development. The number of dematerialised accounts and mutual fund folios has expanded because households have started to invest more in market-linked financial products.
