SIPs and equities dominate 80 pc of digital investors' wealth in India
New Delhi, June 23
An average digital investor in India holds nearly Rs 10 lakh in his portfolio and adds about Rs 3 lakh annually, yet almost 80 per cent of investable digital wealth remains concentrated in SIPs, direct equities and lump‑sum mutual funds, a report said on Tuesday.
The report from consulting firm Redseer said SIPs account for 37 per cent of holdings and direct equities 32 per cent, signalling that product exploration has not kept pace with asset accumulation.
The report suggested that the next chapter of growth will be determined less by investor acquisition and more by investor behaviour. Products such as ETFs, global equities, margin trading facilities, and loans against securities enjoy considerable awareness, yet adoption remains limited.
The firm identified three investor groups shaping the market: guided savers, who treat investing as a long‑term savings discipline; aspiring investors, who are gradually widening participation; and confident builders, who diversify and capitalise on market opportunities.
"The more interesting challenge for platforms today lies in helping investors navigate a wider investment universe and participate with greater conviction," said Mrigank Gutgutia, Partner, Redseer Strategy Consultants.
Platforms that can simplify decision-making, surface relevant opportunities at the right moment and build trust will capture greater AUM share over time.
The next chapter of India's digital investing story will be written by platforms that succeed in transforming passive participation into deeper financial engagement, it added.
"One platform commands close to half of active platform usage, despite strong awareness across competing platforms," the report said, adding that nearly two-thirds of investors would not switch platforms even for zero brokerage.
Pricing has increasingly become a hygiene factor rather than a decisive differentiator.
Investors place significantly greater value on intuitive interfaces, execution reliability, consolidated portfolio visibility, and brand trust, with leading platforms outperforming category averages most meaningfully on these attributes.
— IANS
Reader Comments
That's encouraging news. I'm part of the "guided saver" category they mention. I don't have the time or expertise to track individual stocks, so SIPs are my go-to. The 80% concentration makes sense - we Indians prefer the set-and-forget approach. However, I wish more platforms educated us about rebalancing. Been with the same fund for 3 years, not sure if my allocation is still right for my goals. 😊
Interesting breakdown. Back in the US, we'd have a very different mix - more ETFs and direct stock picking. But the Indian approach of heavy SIP reliance makes sense given the market volatility and commission structures here. The report's point about trust being more important than pricing is spot on. I'll happily pay a few extra rupees for a platform that doesn't freeze during market opens and gives me clean portfolio views. Zero brokerage is great, but execution reliability is paramount.
The concentration in SIPs and mutual funds reflects our risk-averse nature. We've seen enough scams and downturns - real estate bubbles, Harshad Mehta, Satyam - to be cautious. That's why we stick with what's familiar. But the report misses an important point: taxation. For higher earners, the long-term capital gains tax and dividend taxation significantly impact net returns, yet platforms rarely help users optimise for this. Tax-efficient investing could be the next big shift.
As someone who moved from London to Bangalore, I can see both worlds. The Indian digital investing ecosystem has leapfrogged the West in some ways - zero brokerage, UPI-linked fund transfers, paperless onboarding. But the product depth is still evolving. I use SIPs for my core portfolio but miss easy access to REITs and fractional real estate that we had back home. Still, given India's economic growth story, the current market concentration is understandable. Platforms just need to nudge us gently towards diversification.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.