Demat Accounts Hit 192 Million: Who Are the Real Winners?
Demat account counts jumped from the low millions before 2020 to well over 190–200 million by FY25 , driving higher trading volumes and boosting revenues for brokers, exchanges and other market service providers.
Source: Axis Capital Research Report, April 2026 (Behind the Trades). Table / Charts mentioned above are used to explain the concept and is for illustration purpose only
Digitisation: The catalyst turning India’s savings into market capital
Digitisation — led by Aadhaar, UPI and seamless data exchange — has removed the old frictions of geography, paperwork and cost, making investing instant, paperless and affordable. That trio unlocked mass onboarding, powered discount brokers and fintech platforms such Zerodha, Groww, Upstox, Dhan etc, and shifted household savings from physical assets into financial markets, widening participation and deepening liquidity across India’s capital markets.
Digitisation Drives a Demat Surge: 5 Years of Record Account Growth
- After a steady 2015–2020 run, digitisation propelled a sharp uptick in demat accounts during 2021–2025.
- The surge was driven by COVID lockdowns, the rise of discount brokers, and a rapid V shaped market recovery after the crash.
Demat penetration rose steadily from about 2% in FY17 to 13.4% in FY25, but still trails peers like China (20%) and the US (60%). Continued digitisation and retail onboarding point to substantial room for further growth.
From Onboarding to Earnings: The Real Beneficiaries of Demat Growth
| Beneficiary | How they captured value |
|---|---|
| Brokers | Onboarding → recurring revenue from brokerage, margin lending, MF distribution and add‐on services; low‐cost platforms scaled fast. |
| Exchanges | Higher retail turnover lifts transaction, clearing and listing fees; IPO activity increases primary‐market fee pools. |
| Depositories | Scale in custody and servicing fees; each new account raises corporate‐action processing and custody volumes. |
*IBEF summary on FY25 demat additions and broker numbers 1
*Broker/Depository data and Oct‐2025 update (CDSL/NSDL split and total accounts) reported by Angel One 2
Why this matters to investors
Because you can gain direct, investable exposure to India’s capital‐markets ecosystem (brokers, exchanges, depositories, AMCs) via a regulated index fund that converts thematic conviction into tradable units.
India’s Capital Market has outshined global major economies
Data as of 31 March 2026; Source: Nifty Indices & FactSet. Past performance may or may not be sustained in the future. The above information should not be construed as promise, guarantee or forecast of returns. Table / Charts mentioned above are used to explain the concept and is for illustration purpose only
India’s strong market performance has created a virtuous cycle—rising returns, active IPOs and deeper liquidity have pulled in both domestic savers and foreign investors, while fintech led onboarding and discount brokers converted household savings into tradable capital
Ready to turn demat account growth into investment opportunity?
With the launch of the Axis Nifty Capital Markets Index Fund NFO, you have a timely way to convert the surge in demat accounts and market activity into an investable theme.
Axis Nifty Capital Markets Index Fund is an open-ended index fund that aims to provide returns, before expenses, that closely correspond to the performance of the Nifty Capital Markets Total Return Index (TRI), subject to tracking error.
Composition of Index: Nifty Capital Markets Index
Source: Nifty Indices, Data as of 30-Mar-2026. Past performance may or may not be sustained in the future. The above information should not be construed as promise, guarantee or forecast of returns. Table / Charts mentioned above are used to explain the concept and is for illustration purpose only. The Stocks mentioned herein are for general assessment purpose only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. https://niftyindices.com/indices/equity/thematic-indices/nifty-india-defence
Performance of Index
- Returns: The Nifty Capital Markets TRI noted consistent outperformance to Nifty 500 TRI since inception
- Risk: The sector being thematic has also experienced higher volatility compared by Nifty 500 TRI
Data as of 30-Mar-2026. Past performance may or may not be sustained in the future. The above information should not be construed as promise, guarantee or forecast of returns. Table / Charts mentioned above are used to explain the concept and is for illustration purpose only. *Nifty Capital Markets Index start of index values from 28-Mar-2018.
CTA: Own the ecosystem via Axis Nifty Capital Markets Index Fund
Subscribe to the Axis Nifty Capital Markets Index Fund NFO to gain focused exposure to brokers, exchanges and market infrastructure; consider a small satellite allocation, 3–5 year horizon, review the offer document for TER and risks, and consult your financial advisor before investing
Investors should consult their financial advisors if in doubt about whether the product is suitable for them. The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made
Axis Bank Ltd, is not liable or responsible for any loss or shortfall resulting from the operation of the schemeMutual fund investments are subject to market risks, read all scheme related documents carefully.
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