45% of Indians Under 35 Prefer Stocks as Their Primary Investment

The investment landscape in India is evolving, with young investors increasingly favouring the stock market. The latest Investor Behaviour Index (IBI 2025) reveals that 81% of respondents have invested in stocks, with nearly 45% of individuals under 35 considering equities their primary investment avenue. This shift is largely attributed to greater financial awareness, improved access to investment platforms, and a preference for long-term wealth creation.

Challenges Hindering Stock Market Participation

Despite this growing enthusiasm, a significant portion of the population remains hesitant about stock market investments. The survey highlights that:

• 42% of non-investors cite a lack of financial knowledge as their primary barrier.
• 44% of aspiring investors seek structured, step-by-step guidance to start their investment journey.
• 38% prefer short, online video courses, indicating a rising demand for concise and accessible financial education.

The Role of Digital Platforms in Investment Growth

Technology is playing a crucial role in simplifying stock market access. The survey notes that 68% of respondents rely on digital platforms for both investing and financial learning. The increasing adoption of AI-powered insights, real-time market data, and virtual trading tools has reduced barriers for new investors. Notably, 49.6% of first-time investors practised using virtual money before making real investments, reflecting a cautious yet progressive approach.

Gender Disparity in Stock Market Participation

Despite rising interest, a significant gender gap persists in equity investing. Only 10.1% of investors surveyed were women, although 34% expressed plans to increase their equity exposure in the coming year. This highlights the need for targeted financial literacy initiatives aimed at bridging the gender divide in investment participation.

Market Concerns and Investor Sentiment

While young investors are increasingly drawn to equities, market volatility remains a concern. The survey found that:

• 51% of respondents fear potential market crashes, indicating risk aversion among investors.
• 41% of non-investors stated that free initial guidance would encourage them to start investing, suggesting the need for better educational resources and advisory services.

Financial Inclusion Beyond Metros

The survey also sheds light on the expansion of stock market participation beyond metropolitan cities. 40% of respondents were from tier-II and tier-III cities, reflecting deeper financial inclusion and growing awareness across different regions. The increasing accessibility of investment platforms and structured financial education has played a pivotal role in bridging this urban-rural divide.

Conclusion: The Need for Continuous Financial Education

The findings of the IBI 2025 survey indicate a paradigm shift in investment preferences among young Indians, driven by technology, education, and a desire for long-term wealth creation. However, financial literacy remains a key challenge, necessitating structured education, accessible resources, and advisory services to sustain this momentum. As digital platforms continue to evolve, fostering financial awareness will be crucial in shaping the future of India’s investment landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.