Demat Account Growth Halves in 2025 Amid Market Volatility and Investor Caution

• New Demat account openings decreased by 33% in 2025, with 3.06 crore accounts opened, down from 4.60 crore in 2024.
• This marks the first annual decline in new Demat accounts since 2021, attributed to weak market returns and increased uncertainty.
• Benchmark indices Sensex and Nifty saw modest gains, but midcap and smallcap segments performed poorly, deterring new investors.
• Geopolitical tensions, FPI outflows, high valuations, and muted IPO returns further dampened retail investor enthusiasm.
• Total Demat accounts reached 21.59 crore, but the growth rate has slowed significantly, with some investors shifting to Gold ETFs.

Why It Matters: Demat account growth significantly slowed in 2025 due to market volatility and investor caution.