Indian stock market sees surge of young investors

Indian stock market is now dominated by young investors of age below 30 years, as highlighted by official data from the National Stock Exchange.

As per the data, the number of young investors have surged rapidly in the Indian stock markets. It highlighted that between March 2018 and August 2024, there has been a remarkable increase in the share of investors under 30 years old. In March 2018, this age group made up only 22.9 per cent of the total investor base.

However, by August 2024, their share had grown significantly to 40 per cent, reflecting a rapid rise in the participation of young investors in the stock market.

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“From Mar'18 to Aug'24, there has been a notable increase in younger investors entering the market. The share of investors under 30 years old has surged from 22.9 per cent in Mar'18 to a significant 40.0 per cent by Aug'24, indicating growing interest among younger individuals” said NSE.

While the younger age group investors have seen considerable growth, the data revealed that the other age groups have experienced either stability or a decline in their market share.

As per NSE, the investors of 30-39 and 40-49 age groups, for instance, have seen their representation in the market remain relatively steady during this period, without major changes in their respective shares. In contrast, older age groups have shown a clear decline in their involvement in the stock market.

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The data revealed investors aged 50-59 years and those aged 60 years and above have consistently reduced their presence. Particularly, the share of investors of above 60 age group fell from 12.7 per cent in March 2018 to just 7.2 per cent by August 2024.

“Older age groups (50-59 years and 60+ years) have seen a consistent decrease in their respective shares” NSE added.

This shift in the age distribution of stock market participants has also impacted the overall age profile of the registered investor base.

According to NSE data, the median age of investors, which was 38 years in March 2018, dropped to 32 years by March 2024. Similarly, the mean age of investors also decreased, falling from 41.2 years in March 2018 to 35.8 years by August 2024.

This trend suggests that stock market investing is becoming increasingly popular among younger individuals, while older generations are gradually reducing their participation.