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MUMBAI — The value of assets under management (AUM) in India’s mutual fund industry has crossed the ₹80-trillion mark — a milestone that underscores rapid adoption of market-based investments. Yet, even as participation surges, the head of SEBI has raised concerns about persistent gaps in financial literacy.
Addressing a regional investor-awareness seminar organised by the National Stock Exchange of India (NSE) in Puducherry, SEBI Chairman Tuhin Kanta Pandey warned that mere participation is not enough — investors must also truly understand what they are investing in.
> “Financial literacy stands as a foundation of empowerment, enabling individuals to understand how to save, invest and protect their hard-earned money while navigating an increasingly digital and interconnected financial ecosystem,” Pandey said.
Despite the strong growth in assets, a recent SEBI-sponsored survey shows that only 36 % of investors have moderate or high knowledge of securities markets; the rest rely on advice from friends, family or social media for investment decisions. This dependence on informal channels, Pandey said, exposes many to unnecessary risk, especially in an era where financial transactions and choices are increasingly digital.
Pandey also pointed to the rapid rise in investor accounts: as of October 2025, India has over 21 crore demat accounts held by approximately 13.6 crore unique investors, with nearly one lakh new demat accounts being opened every day.
To ensure that this growth is sustainable and safe for retail investors, SEBI has rolled out several initiatives: from a validated UPI-handle framework, integration of holdings with digital lockers like DigiLocker, simplified nomination rules, to grievance-redressal reforms like SCORES 2.0 and SMART ODR.
Further, SEBI has ramped up investor-awareness programmes: in the most recent fiscal year, nearly 50,000 such programmes covered around 90 % of districts nationwide, reaching even remote areas.
Pandey said that for India’s financial-market growth to translate into real social-economic progress, this surge in participation needs to be matched with deeper grassroots-level understanding. He stressed that awareness must evolve into comprehension — only then can investors make informed decisions and avoid undue risks.
As mutual fund penetration accelerates, SEBI’s push for financial literacy emerges as a critical piece of the puzzle — a step many experts believe is essential to ensure long-term stability and protection for millions of Indian investors.
