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The new Indian investor is confident and connected, but are they informed Enabling investors to understand risk, avoid common mistakes and build consistency in their approach can contribute to a more stable and resilient market ecosystem, notes Milan Parikh, Chairman & Managing Director, Jainam Broking Limited. By CNBCTV18April 20, 2026, 10:08:34 AM IST (Published)India’s capital markets are seeing a steady expansion in participation, with equities becoming a more regular part of how households engage with financial decisions. With over 12 crore registered investors, the market today reflects a distinctly younger demographic profile. Nearly 40% of participants fall within 18-30 age group, with the median investors now in their early thirties. This trend is also reflected in new additions to the market, where younger investors continue to account for more than half of recent registrations. The composition of the investor base is also becoming more diverse. Women now account for about one in four market participants, reflecting a gradual broadening of participation across segments.  In a country where household wealth has largely been held in physical assets such as gold and real estate, the growing engagement with financial markets reflects a shift in how individuals approach investing, with greater familiarity and comfort with participating in financial markets. A more connected Investor Investors today operate in a highly connected environment, with technology shaping how they access and engage with markets. Demat accounts can be opened with ease, trading platforms are accessible on smartphones, and market data, research and global developments are available in real time. This shift is reflected in the scale of digital participation, with app-based platforms accounting for a large share of retail investors. The growing reach of these platforms is evident, with the number of unique investors on the NSE crossing 12.7 crore as of January 2026, while total trading accounts have surpassed 25 crore. This expansion has been supported by continued onboarding of new investors, with the exchange adding a substantial number of new accounts over the past year, reflecting sustained growth in retail participation through digital channels Access has expanded across geographies, including Tier II and Tier III cities, with participation no longer limited by location. Many investors begin their market journey early, engaging with markets through digital-first experiences. Alongside long-term investing, participation in active trading has also grown, supported by digital communities, market forums and educational platforms where ideas circulate rapidly. A broader investor base supports market depth and liquidity, but the nature of participation also reflects increased exposure to circulating market views, short-term trends and collective behaviour, making it more challenging to separate credible insights from noise. When information moves faster than understanding The current market environment is characterised by a continuous flow of information, with market commentary, trading strategies and financial content circulating rapidly across digital platforms and social media, often influencing sentiment in real time. Some of this content adds value but the pace and volume of information flow can make it difficult, particularly for newer investors, to access its reliability. Ideas can spread quickly, and investors may act on them before fully understanding the risks, which makes careful evaluation and a disciplined approach essential. While access to information and tools has improved, market outcomes continue to depend on how this information is understood and applied. Some investors may explore new products or strategies before fully understanding the associated risks and potential returns, especially in more complex segments of the market. Experience in markets gradually develops over time, and for many participants, learning comes through trial and error. Market cycles tend to reinforce that while information may be widely available, discipline, risk awareness and consistency remain central to long-term outcomes. Confidence must be matched with understanding Despite the rise in participation, overall penetration of equity markets in India remains relatively low. According to the Economic Survey 2025‑26, the share of equity and mutual funds in annual household financial savings increased from about 2% in FY12 to just over 15% in FY25, indicating that a substantial portion of household wealth remains outside capital markets even as engagement grows. At the same time, the ease of access and familiarity with markets has led to greater confidence among investors. This highlights both the scale of the opportunity ahead and the importance of strengthening financial understanding as more investors enter the ecosystem. Periods of strong market activity can draw investors towards trends and short-term opportunities. Over time, it becomes evident that outcomes are more stable when decisions are backed by an understanding of risk and a defined approach to investing. Confidence may encourage participation, but navigating markets over time requires clarity on how much risk one is taking and why. Without that clarity, short-term opportunities can come at the cost of long-term outcomes. The role of responsible market intermediaries Broking firms today go beyond providing market access and play an important role in how investors understand and approach markets. This makes investor education an important part of their role. Across the industry, there is a growing focus on building structured learning frameworks, investor awareness initiatives, and guided engagement models that help individuals better understand risk, avoid common pitfalls, and develop consistency in their approach. Many institutions are also strengthening internal onboarding and client orientation practices to support more informed participation. Enabling investors to understand risk, avoid common mistakes and build consistency in their approach can contribute to a more stable and resilient market ecosystem. From access to informed participation  India’s growing retail investor base reflects a wider awareness of financial markets and a willingness among individuals to take an active role in managing their financial future. As participation continues to expand, the real shift will be seen in how investors evolve in their approach, moving from access-driven entry to more informed and considered decision-making. Over time, the ability to stay consistent, understand risks, and align investments with long-term objectives will play a defining role in shaping outcomes. —The author, Milan Parikh, is Chairman & Managing Director, Jainam Broking Limited. The views are personal. Continue Reading with CNBC-TV18 Access MembershipPriority Access and Networking: CNBC-TV18's flagship events Interaction with CNBC-TV18's journalists Webinars & LIVE Q&As with India Inc. Leaders Exclusive CNBC-TV18 studio & newsroom tours Premium business insights, expert opinions & analysis Curated lifestyle privileges & offers