The stock market is playing a vital role in capital formation. In such a situation, the investment inclination of the younger generation has also increased significantly and the participation of the millennial generation (those born between 1997 and 2012) in the stock market is also increasing. Market regulator Securities and Exchange Board of India (SEBI) Chairman Tuhin Kant Pandey said, citing industry estimates, that about one-third of investors are participating in the stock market. Pandey said that this trend not only reflects the growing trust in formal financial systems but also signals a significant opportunity for long-term wealth creation and inclusive participation in the nation’s economic progress. He also said that the participation of young people gives encouraging signs of increasing financial participation at a young age.
As per depository data, the total number of demat accounts has crossed 19 crore as on April 2025, from less than 5 crore in December 2020. SHGE’s monthly ‘Market Pulse’ report shows that the share of investors below 30 years of age has increased from 22.9 per cent in March 2018 to 39.5 per cent in March 2025. This increase reflects increasing financial literacy and easy accessibility through digital platforms. The combined share of investors aged 50 years and above has declined from 25.8 per cent in March 2018 to just 15.1 per cent in March 2025, reflecting a changing investment culture driven by younger, tech-savvy participants. In the last few years, apart from direct investment in shares, investment through mutual funds has also increased. The total number of folios (accounts) has increased to 23.45 crore as of March 2025, from 17.8 crore a year ago. According to the Association of Mutual Funds in India (AMFI) FY25 report, 47 per cent of the investments made by people below the age of 25 were in equity schemes. Young investors are willing to take more risk. This is also evident from the large share of their net investments in the equity segment.
