NSE customer base crossed 20 million mark; young investors are driving market growth

Recently, the National Stock Exchange (nA) announced that its total customer accounts has crossed 20 million, a remarkable increase from the figure of 16.9 million just eight months ago. The achievement underscores the rapidly evolving and growing investment landscape in India participation in retail in capital markets.

“This expansion reflects strong investor confidence in India’s growth story,” said Sriram Krishnan, Chief Business Development Officer at NSE. He attributed this growth to the widespread adoption of mobile trading apps and growth investor awarenessadequately supported by the government digital initiatives which have democratized market access, benefiting investors from tier 2, 3 and 4 cities in particular.

While Maharashtra led the list with 3.6 million accounts, UP was next with 2.2 million accounts, followed by Gujarat with 1.8 million accounts. Rajasthan and West Bengal also made the list with 1.2 million accounts each. Notably, these five states collectively account for approximately 50% of total customer accounts, while the top ten states account for approximately three-quarters of total registrations.

Additionally, the unique investor base registered on NSE was 10.5 million, crossing the 10 million mark on August 8, 2024.

Young investors take the lead

Another notable trend that emerged from the latest NSE report is the significant increase in the participation of young investors. The proportion of investors under the age of 30 almost doubled, rising from 22.9% in March 2018 to 40% by September 2024. Middle-aged investors, aged between 30 and 39, maintained their participation in the markets , albeit with a slight kick.

On the other hand, investors between the ages of 40 and 49 saw a decline in market participation, falling to 15.5% in September 2024 from 20.3% in March 2018. Similar downward trends were also observed in other age categories, namely 50 years. -59 and 60+ age cohorts.

Financial analysts suggest that younger investors are bringing a new dynamism to the market, often favoring high-growth, technology-based investments. In contrast, older investors have traditionally leaned toward more stable and conservative options.