India's retail investing story is still in its early stages, and the rapid rise in participation seen over the past few years is more structural than cyclical, according to Sandeep Nayak, MD & CEO of Centrum Finverse.
With India's young demographic profile, rising incomes and growing awareness of digital investing, Nayak believes the number of Demat accounts could rise from around 20 crore currently to 30 crore over the next five years and potentially touch 40 crore in a decade.
In an interview with Kshitij Anand of ETMarkets, Nayak said that while the bull market has accelerated the entry of new investors, the underlying growth is being driven by India's demographics and increasing financialisation of savings.
However, as younger investors, including Gen Z, embrace equities and derivatives, he cautioned that a get-rich-quick mindset and inadequate focus on risk management remain key challenges.
