India’s Gen-Z, often hailed as tech-savvy and bold in lifestyle choices, is surprisingly cautious when it comes to equity investments. According to the Securities and Exchange Board of India’s (SEBI) 2025 Investor Survey, nearly 79% of Gen-Z households that invest prefer capital preservation over high-risk equity returns, reflecting a deep-seated aversion to market volatility. The findings come amid record retail participation in Indian financial markets, yet highlight a generational reluctance to embrace equity-linked products.
The nationwide survey, conducted across 90,000 households in 400 cities and 1,000 villages, paints a picture of widespread conservatism across age groups, with only 9.5% of Indian households—around 3.2 crore families—actively invested in equity products. Despite growing awareness and access to digital platforms, Gen-Z’s investment behavior remains rooted in caution, with barriers like fear of losses, product complexity, and trust deficits keeping them on the sidelines.
SEBI 2025 Investor Survey – Key Findings on Gen-Z Investment Behavior
| Indicator | Gen-Z Response |
|---|---|
| Risk Appetite | 79% prefer capital preservation |
| Equity Market Participation | Less than 10% of Gen-Z households invest |
| Awareness of Financial Products | 63% aware of at least one equity product |
| Intent to Invest in Future | Only 22% of aware non-investors interested |
| Preferred Learning Format | Short-form videos, reels over workshops |
The survey, executed by market research firm Kantar in collaboration with AMFI, NSE, BSE, NSDL, and CDSL, reveals that India’s equity culture is still nascent, especially among younger demographics. While Gen-Z is digitally fluent and exposed to financial content, their investment decisions are shaped by risk aversion, lack of relatable role models, and limited financial literacy in regional languages.
Barriers to Equity Investment – Gen-Z and Broader Household Trends
| Barrier | % of Non-Investors Affected |
|---|---|
| Product Complexity | 74% |
| Fear of Market Losses | 73% |
| Trust Deficit in Institutions | 51% |
| Lack of Financial Literacy | 68% |
| Absence of Role Models | 45% |
Interestingly, 53.5% of non-investing households are aware of equity products but choose not to invest, while 37% remain completely unaware. Among those aware, only 22% express intent to invest within the next year, signaling untapped potential but also the need for targeted interventions.
Equity Market Penetration – Urban vs Rural Divide
| Region Type | Penetration Rate (%) |
|---|---|
| Top 9 Metro Cities | 23% |
| Broader Urban Areas | 15% |
| Rural India | 6% |
The survey also highlights regional disparities in equity adoption. Delhi leads with 21% household penetration, followed by Andaman & Nicobar Islands (17.1%), Maharashtra (17%), and Puducherry (16.4%). On the other end, Nagaland (3.4%), Meghalaya (4.2%), and Uttarakhand (4.5%) show the lowest participation.
Top and Bottom States by Equity Investment Penetration
| Top States/UTs | Penetration (%) |
|---|---|
| Delhi | 21.0 |
| Andaman & Nicobar Islands | 17.1 |
| Maharashtra | 17.0 |
| Puducherry | 16.4 |
| Bottom States | Penetration (%) |
|---|---|
| Nagaland | 3.4 |
| Meghalaya | 4.2 |
| Uttarakhand | 4.5 |
| Uttar Pradesh & Tripura | 5.3 |
The survey also found that only 6.7% of India’s population invests in mutual funds and ETFs, while direct stock market participation stands at 5.3%. These numbers underscore the limited reach of equity products despite aggressive marketing and digital onboarding by brokers and fintech platforms.
Equity Product Adoption – National Snapshot
| Product Type | % of Population Invested |
|---|---|
| Mutual Funds & ETFs | 6.7% |
| Direct Stocks | 5.3% |
| Bonds & Debentures | 2.1% |
| REITs/InvITs | 0.9% |
| Derivatives (F&O) | 1.3% |
To address these gaps, SEBI has recommended simplified digital interfaces, regional language outreach, and relatable financial influencers. Gen-Z respondents showed a preference for short-form content like reels and explainers, indicating a shift in how financial education must be delivered.
Gen-Z Preferences for Financial Education Formats
| Format Type | Engagement Preference (%) |
|---|---|
| Short-form Videos | 62% |
| Infographics | 48% |
| Interactive Apps | 45% |
| Traditional Workshops | 22% |
| Long-form Articles | 18% |
Experts believe that India’s equity culture can deepen only through sustained financial literacy campaigns, especially targeting youth in Tier 2 and Tier 3 cities. “Gen-Z is not disinterested—they’re cautious. We need to meet them where they are, on platforms they trust, with content they relate to,” said a SEBI official.
Social media platforms have responded actively to the survey findings, with hashtags like #GenZInvesting, #SEBISurvey2025, and #EquityAwareness trending across Twitter/X, Instagram, and YouTube. Influencers and financial educators have begun creating content tailored to Gen-Z’s preferences, signaling a shift in outreach strategy.
Public Sentiment – Social Media Buzz on SEBI Gen-Z Survey
| Platform | Engagement Level | Sentiment (%) | Top Hashtags |
|---|---|---|---|
| Twitter/X | 1.2M mentions | 80% curious | #GenZInvesting #SEBISurvey2025 |
| 1.1M interactions | 85% inspired | #EquityAwareness #FinanceForYouth | |
| 950K views | 78% supportive | #InvestSmart #YouthFinance | |
| YouTube | 870K views | 82% educational | #GenZExplained #StockMarketBasics |
In conclusion, SEBI’s 2025 Investor Survey reveals a paradox: India’s Gen-Z is digitally empowered but financially cautious. With only 9.5% of households invested in equity products and 79% of Gen-Z investors prioritizing safety over returns, the challenge lies in bridging the gap between awareness and action. As India’s financial markets evolve, unlocking Gen-Z’s potential could be the key to building a robust, inclusive equity culture.
Disclaimer: This article is based on publicly available survey data, verified media reports, and official statements from SEBI and associated institutions. It does not constitute financial advice or prediction of investment outcomes. Readers are advised to consult certified financial advisors and follow official updates from SEBI for accurate information.
