Why 75 Percent Of Demat Accounts In India Are Inactive?- Keyword Insertion Issue

Despite the increase of demat accounts in recent years, active investors are still low and according to research out of most of the demat accounts added, almost half of them continue to be inactive. Based on this, most professionals gather that this low number is also brought on by the duplication of accounts, inflation, and more since most people have more than one demat account. 

When it comes to a Demat account opening process, the actual number of active individuals can be lower and most experts have seen a significant drop from up to 40 percent even during the peak years. 

Most investors are just getting to learn about the stock market and these accounts and are opening up demat accounts which means that in the next couple of years the numbers could surge in the equity market. With so many new investors interested in opening an account and investing their money, the surge continues to rise. Nonetheless, there are many accounts that go dormant and users do not use them. In fact, research shows that nearly 75% demat accounts are inactive and there is a reason behind this. If you are keen to know the reason for inactive demat accounts, you have come to the right place. 

Today, retail investors in India have realised the value of investing in the stock markets. Hence, many people open demat and trading accounts to invest in shares, bonds, ETFs, and mutual funds as a way to build wealth. At the same time, financial and investment experts have found that a huge percentage of accounts become inactive.