Gujarat's investor base expands 2.8x in 10 years

AHMEDABAD: Lured by handsome gains and encouraged by increasing awareness about savings and investments, Gujarat's investor base expanded nearly threefolds over a decade.
According to data by the National Stock Exchange (NSE), the total number of equity investors from Gujarat stood at 69 lakh in the fiscal year 2023, up 2.8x since fiscal year 2013. The number of investors increased sharply since the Covid pandemic, as 60% of these investors were registered after April 2020. Experts attribute the rising number of investors to greater awareness, lower bank interest rates and improved financial literacy, besides better gains.
Gunjan Choksi, director of a stock broking firm, said, "Decline in interest rates for bank deposits was one of the key reasons that diverted investors towards equity markets. Moreover, financial literacy increased over the years and there is a greater inclination of the younger generation towards equity investments. This led to more demat accounts getting opened out of Gujarat. Investors must invest with a long-term focus."
India is home to some 7.52 crore unique registered investors, based on PAN count, as on date.
'Tech lured youngsters into investing'
The investment into equities from Gujarat has increased sharply over the past decade. Ten years ago, Gujarat accounted for 7% (Rs 1,568 crore) in the daily average turnover of Indian investors. This has grown to 13% at Rs 13,961 crore during the fiscal year 2023," said a top official of NSE on condition of anonymity. He added, "Gujarat based investors' investment growth rate has now surpassed the national average."
Technology is one of the biggest factors that lured young professionals into opening demat accounts and beginning their investment journey, according to industry players. A slew of websites and apps which simplify trading coupled with better gains on investments have lured many youngsters. The rise in the number of investors is also visible in the expanding assets under management (AUM) in mutual fund portfolios. "The AUM for mutual funds in Gujarat rose 90% in the past five years, signalling both an increase in investment ticket size as well as the number of investors. The returns on MF investments are largely seen from equity and hybrid funds as compared to fixed income assets, and therefore, an increasing number of investors are being wooed into equity investments," said Deepak Jain, the sales head of an asset management firm.