Retail Power: Retail holdings rise more than 10x over the last decade

The median age of investors has declined from 41.1 years in 2020 to 35.8 years in 2024 along with increased female participation, according to the report

Retail holdings as direct and indirect investors (through mutual funds) surged more than 10 times over the last 10 years, according to data from the National Stock Exchange (NSE).

While the total investor base crossed 10 crore in August 2024, the next one crore investors were added in just five months to peg the total number at 10.9 crore in December 24. Furthermore, 2.3 crore investors were added during the year, which is the highest ever addition in a calendar year, as per the 2024 annual data highlight report by NSE.

The data further highlighted the fact that India continues to remain the fourth largest market globally, with its market capitalisation crossing $5 trillion during the year. The top three largest markets currently are US, China (including Hong Kong) and Japan.

Growth in retail investors

As per NSE, retail investors currently hold 17.6% of the total market capitalisation of NSE-listed companies, up from 10.9% in 2014. Direct retail holdings currently stands at 9.6 percent. Indirect retail participation has also been picking up pace on par with direct holdings. Participation through mutual funds has risen to 8 percent, an increase of around 2.9 percent in the last decade.

Investor portfolios and earnings have also seen an uptick. Household equity portfolios reached Rs 82.5 lakh crore as of September 2024, with a CAGR of 25% since 2014. Stock market household investors also gained around Rs 13.2 lakh crore in CY2024 on the back of strong performances across indices.

Investors grow across demography

Barring around 30 pin codes, India now has registered investors ( Unique investors based on PAN number) in 99.84% of its pin codes. Currently, Maharashtra, Uttar Pradesh, and Gujarat collectively represent one-third of India’s investor base as of December 26, 2024, according to the report.

Uttar Pradesh has emerged as a leader in new registrations, surpassing Maharashtra (29.7 percent). Growth in new registrations was seen in states like Uttar Pradesh, Bihar, and Rajasthan at 36.2 percent, 40.5 percent, and 30.3 percent, respectively. Additionally, the top five districts (Delhi NCR, Mumbai, Pune, Surat, and Ahmedabad) together accounted for 15 percent of all new investors in 2024.  Region wise, North India continues to see the maximum number of investors at 3.94 crore (up from 2.93 crore), followed by West India at 3.31 crore (up from 2.69 crore).

Interestingly, according to the report, the median age of investors has declined from 41.1 years in 2020 to 35.8 years in 2024 along with increased female participation. Women now comprise 24 percent of the total investor base, up from 23 percent in 2023.

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