The claim that 77% of Indians are missing the best decade of wealth creation needs an important clarification. The widely reported 77% figure refers to inactive demat accounts, not 77% of Indian people or investors. As of December 2025, India had around 21.6 crore demat accounts, while only about 5 crore were reported to have recorded activity during the previous year. The bigger takeaway is that having access to the stock market does not necessarily translate into sustained participation, and long periods of inactivity can mean missing potential opportunities for long term wealth creation.
Introduction
India’s investment landscape has changed significantly over the past decade. Digital onboarding, easier KYC, discount brokers and growing awareness have brought millions of households closer to equities, mutual funds and other market linked products.
Yet the latest numbers reveal a gap between access and participation. A large number of demat accounts are inactive, while India’s unique investor base has crossed 12 crore. The Economic Survey 2025-26 noted that unique investors crossed the 12 crore mark in September 2025, while total demat accounts exceeded 21.6 crore by December.
This raises a more useful question than whether people are “missing the best decade”: are Indian households giving their long term money enough time to participate in potential wealth creation?
Context and Background
The rise in demat accounts has been remarkable. But demat accounts and investors are not the same thing because one individual can have multiple accounts across different brokers or depository participants.
SEBI’s research has specifically examined this distinction by looking at unique investors after de-duplicating accounts across depositories.
The 77% inactivity figure also requires context. A dormant account does not necessarily mean an investor has abandoned investing completely. It could belong to someone who opened an account for an IPO, maintains multiple brokerage accounts, holds investments without frequent transactions or has temporarily stopped investing.
SEBI’s Investor Survey 2025 provides another perspective. Its findings show that investment participation can change because of market performance, volatility, financial requirements and other external factors.
Why Does Long-Term Participation Matter?
Wealth Creation Is Usually a Long-Term Process
Long term wealth creation does not depend simply on opening a demat account. It involves saving consistently, selecting investments appropriate to one’s objectives and allowing sufficient time for potential returns to compound.
For example, an investor who starts with ₹5 lakh and earns a hypothetical 10% annual return would have approximately ₹12.97 lakh after 10 years before taxes and costs. This is only a mathematical illustration, not a forecast or guaranteed investment outcome.
The example demonstrates why time in the market can matter. Missing several years of potential compounding can affect the amount of capital available later.
Idle Money Has an Opportunity Cost
There is another side to the equation. Money that remains entirely idle for long periods may lose purchasing power because of inflation.
This does not mean every rupee should be invested in equities. Emergency savings and money needed for near term expenses serve an important purpose. The issue is whether long term money has a clear financial role or simply remains unallocated.
What Could Be Behind India’s Dormant Demat Accounts?
Several factors can explain the large inactive account base.
IPO-Driven Participation
Some people opened demat accounts primarily to participate in IPOs. If they did not continue investing after the IPO experience, their accounts could subsequently become inactive.
Multiple Demat Accounts
Digital platforms have made it relatively easy to open accounts with different brokers. An investor might actively use one account while leaving two or three others untouched.
Market Losses and Volatility
SEBI’s Investor Survey 2025 found that poor performance was a significant factor among dormant investors, with the report stating that 87% of dormant investors cited poor performance related factors.
This is particularly relevant because investors who enter markets during strong periods may have different expectations from those investing during volatile or declining markets.
Impact on Indian Retail Investors
The biggest lesson is that account ownership is not the same as wealth creation.
An investor does not need to trade frequently to participate meaningfully in the market. In fact, long term investing can involve relatively limited transactions.
The more important questions are whether the investor has defined financial goals, an appropriate asset allocation, adequate emergency savings and a consistent approach to long term investing.
For investors who have stopped participating after a difficult market experience, reviewing the original financial objective may be more useful than reacting to short term market movements.
Opportunities and Risks
India’s expanding investor base creates greater access to formal financial markets. The growing participation of investors outside traditional metropolitan centres is also significant. The Economic Survey noted that mutual fund participation had expanded substantially beyond Tier-I cities.
However, increased access also brings risks.
Investors can confuse market participation with frequent trading. SEBI has continued to highlight concerns around derivatives trading, while its recent research agenda includes studies examining the trading behaviour and profitability of individual traders in equity derivatives.
Long term wealth creation also cannot be reduced to equities alone. Different financial goals require different levels of liquidity, risk and diversification.
The practical opportunity is therefore not simply to become an active trader. It is to ensure that suitable long term savings are not permanently disconnected from a financial plan.
Conclusion
The statement that 77% Indians are missing the best decade of wealth creation is too broad if interpreted literally. The 77% figure relates to inactive demat accounts, not 77% of India’s population or unique investors.
But the underlying issue is worth examining. India has created unprecedented access to financial markets, yet a substantial gap remains between having an investment account and maintaining meaningful long term participation.
For Indian households, the focus should be less on predicting whether this is the “best decade” and more on understanding how much money is available for long term goals, how inflation affects it, how compounding works and what level of investment risk is appropriate. The next phase of India’s investing story may depend as much on sustained financial participation as it does on opening more accounts.
Frequently Asked Questions
1. Does 77% of Indians really miss out on wealth creation?
No. The widely reported 77% figure refers to inactive demat accounts, not 77% of India’s population. Around 21.6 crore demat accounts existed by December 2025, while about 5 crore had recorded activity during the preceding year. Multiple accounts can belong to the same individual, so account numbers should not be equated with the number of investors.
2. How many unique investors are there in India?
India crossed the 12 crore unique investor mark in September 2025, according to the Economic Survey 2025-26. This figure is different from the total number of demat accounts because one person can hold multiple accounts. The distinction is important when assessing actual retail participation in India’s securities markets.
3. What is a dormant demat account?
A dormant or inactive demat account is generally one that has not recorded relevant transactions for a specified period. Dormancy does not necessarily mean the account has no securities or that the investor has completely stopped investing elsewhere. An investor may simply have stopped using that particular account.
4. Why are so many demat accounts inactive?
Several factors can contribute to inactivity, including multiple accounts held by the same investor, accounts opened primarily for IPO participation and investors pausing activity after experiencing market volatility or disappointing performance. Therefore, inactivity does not have one single explanation.
5. Can an inactive demat account still hold shares?
Yes. An inactive account can continue to hold securities. The absence of frequent transactions does not automatically mean the holdings have been sold or removed. Investors with old accounts should therefore check their statements and holdings rather than assuming that an inactive account has no value.
6. Does long term investing help with wealth creation?
Long term investing gives investments more time to potentially benefit from compounding and economic growth. However, returns are not guaranteed, and different assets carry different risks. The appropriate approach depends on factors such as financial goals, investment horizon, liquidity requirements and an investor’s ability to tolerate losses.
7. Is keeping money in a savings account better than investing?
A savings account provides liquidity and can be appropriate for emergency funds and short term requirements. However, money held for long term goals may face purchasing power erosion from inflation if its growth does not keep pace with rising prices. The appropriate balance depends on when the money will be needed.
8. Does missing a few years of investing matter?
It can. Delaying investment reduces the amount of time available for potential compounding. However, this does not mean investors should rush into markets simply because they believe they are missing an opportunity. Financial decisions should consider valuation, risk, financial goals and investment horizon rather than a fear of missing out.
9. Is frequent trading necessary for wealth creation?
No. Frequent trading is not a requirement for long term wealth creation. Investors can participate through approaches that involve relatively limited transactions. Trading, particularly in complex or leveraged products, carries additional risks and should not be confused with long term investing.
10. What should Indian investors focus on instead of the 77% figure?
Investors should focus on their own financial position rather than a headline statistic. Key considerations include emergency savings, financial goals, investment horizon, diversification, asset allocation and risk tolerance. The important question is whether suitable long term savings are being managed deliberately rather than whether an individual trades frequently.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Parvati Rai is the Vice President of the Research team at Equentis. She has over 15 years of equity-research and strategy-consulting experience. A specialist in deep-dive valuations, financial modelling, and forecasting, she has built research desks from the ground up, by steering buy-side, sell-side, and independent coverage across sectors. When she isn’t fine-tuning models, Parvati unwinds on nature treks and mentors aspiring analysts.
