After years of record-breaking growth following the pandemic, India’s retail investing boom faced its first major stress test in 2025. According to combined data from NSDL and CDSL, new demat account additions fell by approximately 33% over the calendar year, marking a significant deceleration in the “financialization of savings” trend.
While 46 million accounts were added in 2024, only 30.6 million new accounts were opened in 2025—the first annual decline in fresh registrations since 2021.
Why the Surge Slowed Down: 4 Key Factors
The drop in new entrants isn’t due to a lack of interest but rather a series of “macro shocks” that dampened the risk appetite of first-time investors.
1. Market Volatility & The “Tariff Shock”
The biggest headwind in 2025 was the heightened volatility triggered by global trade tensions. The U.S. imposition of a 50% tariff on several Indian exports led to a massive outflow of Foreign Institutional Investor (FII) capital, causing the Rupee to hit record lows. New investors, often sensitive to red charts, stayed on the sidelines as the Nifty Smallcap 100 fell by over 5%.
2. Underwhelming IPO Performance
While the IPO pipeline remained active, the “listing gain” magic faded. Several high-profile mainboard and SME listings delivered muted or negative returns shortly after debut. Since a primary driver for new accounts is the desire to apply for “hot” IPOs, the lack of immediate profitability discouraged many from opening accounts for family members.
3. Weak Corporate Earnings
Throughout 2025, several sectors—most notably FMCG and Auto—reported a slowdown in urban consumption. Disappointing quarterly results led to a “time correction” in the market, where prices remained stagnant for months, frustrating new retail participants accustomed to the 2023-2024 bull run.
4. Shifting Interest to Gold and Silver
As equity markets turned directionless, Indian households pivoted back to traditional safe havens. Gold and silver saw a massive surge in demand in late 2025, with many retail investors choosing to park their savings in physical assets or Gold ETFs rather than volatile mid-cap stocks.
Impact on the Brokerage Industry
The 33% drop in onboarding has directly impacted the “Big Three” of Indian broking, leading to a shift in market share.
| Broker | Market Status (Dec 2025) | Impact |
| Groww | Market Leader | Maintained growth; added ~40k active users monthly. |
| Zerodha | Contraction | Experienced a steady decline in active users for 6+ months. |
| Angel One | Mixed | Lost ~36k users in Dec 2025; focusing on a “super-app” strategy. |
Nithin Kamath, CEO of Zerodha, noted in late 2025 that the industry should brace for a 10–20% decline in revenue as the era of “easy growth” concludes and the market enters a more mature, slower phase.
The Silver Lining: A Maturing Base
Despite the drop in new accounts, the total number of demat accounts in India reached 216 million by the end of 2025.
- SIP Resilience: Systematic Investment Plan (SIP) inflows remained at record highs, crossing ₹29,500 crore monthly, suggesting that while trading is down, long-term investing remains intact.
- Geographic Reach: New additions are increasingly coming from Tier-2 and Tier-3 cities, indicating that the infrastructure for a more self-reliant, domestically-driven financial ecosystem is now permanent.
