More people in Assam are turning to stock markets, but experts warn that growing participation is outpacing financial awareness
Stock market investments have been around for decades, but in recent years they have emerged as an additional avenue for wealth creation, especially among retail investors. The rise of digital platforms, easy access to trading applications and growing awareness about financial markets have brought a large number of people, particularly young investors, into the equity market.
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Like several other Indian states, Assam has witnessed a sharp rise in stock market participation in recent years, particularly after the Covid-19 pandemic. A significant share of the state’s investors comes from Guwahati, which has emerged as a key centre for retail investment activity.
According to information available on the National Stock Exchange of India (NSE) website, Assam had 53.17 lakh unique trading accounts as of July 29, 2026. A large portion of this growth has come in the last five years, with Assam adding 45.73 lakh trading accounts between 2021 and 2025.
The growing participation reflects a wider national trend, driven by rapid digitisation, fintech-led access to financial products, availability of low-cost trading platforms and increasing investor awareness.
Several young investors GPlus spoke to in Guwahati said they were investing in financial assets in some form or the other, either through direct stocks, mutual funds or systematic investment plans (SIPs).
However, while more people are entering the stock market, many potential investors continue to face challenges due to a lack of basic knowledge, awareness of market risks and reliable market information needed to make informed decisions.
“People invest without doing any background research. They blindly follow investment recommendations that float on various social media platforms including YouTube and Instagram,” a Guwahati-based investor with over a decade of market experience told GPlus, requesting anonymity.
The investor said many people in Guwahati are putting money into stocks and other risky financial assets simply by following trends or copying their peers.
“People do not wish to learn about the background of the company they are going to invest in. They do not follow stock exchange filings and earnings of the companies. They invest mostly with the trends,” the investor said.
The investor added that while there are several reliable sources of information available on the internet, many investors often fall prey to unreliable and misleading accounts.
The investor urged people to take investment advice only from SEBI-registered firms and individuals.
A major concern among regulators and market observers has been the growing influence of unregistered financial influencers, commonly known as ‘finfluencers’.
Finfluencers are individuals who provide information, advice or recommendations on financial topics through social and digital media platforms such as Instagram, Facebook, YouTube, LinkedIn and Twitter. Through engaging videos, reels, messages and other content formats, they can influence the financial decisions of their followers.
According to SEBI, while some finfluencers may be genuine educators, many are effectively encouraging their followers, investors and prospective investors to purchase financial products or services in return for undisclosed compensation from producers or platforms.
Another Guwahati-based investor, requesting anonymity, said a majority of young people entering the stock market are incurring losses in high-risk Futures and Options (F&O) trading.
“F&O is quite complex, and people should avoid putting money into such assets,” the investor said.
A study conducted by India’s financial markets regulator SEBI found that approximately 93 per cent, or more than nine out of 10 individual traders in the futures and options segment, incur significant losses.
The study also noted that despite suffering losses, more than 75 per cent of loss-making traders continued trading in the F&O segment.
F&O are financial derivatives that allow traders to speculate on asset price movements without owning the underlying asset. The segment is considered a high-risk, high-return avenue, with the possibility of substantial gains as well as losses.
According to SEBI’s findings, individual F&O traders incurred average losses of approximately Rs 2 lakh, including transaction costs, over a three-year period.
The study also found that the top 3.5 per cent of loss-making traders, roughly four lakh individuals, suffered average losses of Rs 28 lakh per person over the same period, inclusive of transaction costs.
In an effort to discourage excessive speculative trading, the central government increased the Securities Transaction Tax (STT) on certain F&O transactions. STT is a levy charged by the government on transactions involving securities in the stock market.
Despite concerns over risky trading practices, a large number of investors in Guwahati are choosing the SIP route and mutual funds as their preferred investment options.
“I am okay with earning less through SIPs. I don’t have much risk appetite,” a young professional from Ulubari, who recently completed college, told GPlus. She added that many of her friends and colleagues were investing through SIPs or direct stocks.
Financial experts generally consider SIPs as a disciplined investment approach for long-term investors as they allow individuals to invest regularly and reduce the impact of market volatility over time.
Several other young investors GPlus spoke to echoed similar views, saying they preferred mutual funds because of professional fund management.
“I am not a financial expert. Hence, I invest in mutual funds. My fund manager takes care of the rest; where to put my money best,” another young woman professional said.
GPlus also spoke to a Guwahati-based stock market academy to understand investor behaviour and market sentiment.
A representative of the academy said the “trust” among investors in Indian stock markets has declined over the past couple of years.
Also, many market participants believe investors are concerned about the high taxes levied on stock market investment returns, which they say are discouraging participation amid already weak market sentiment.
The Sensex remains around 8,000 points below its all-time high, amid several factors including the West Asia crisis, elevated crude oil prices and weak foreign investment flows into Indian stock markets.
“There is a trust deficit in the markets. Investors are not getting returns as they had expected,” the academy representative said.
The representative said many first-time investors approach the market without adequate understanding of trading and investment principles.
“The stock market enthusiasts who come to us initially have ‘zero knowledge’. The moment they understand that trading is a different ball game, they come to us,” the representative added.
According to the representative, many investors understand the importance of learning only after losing their hard-earned money.
“Most of the people who come to us want easy and immediate money from investments. They don’t have the patience to hold on to the investments for a longer period of time. They want instant liquidity,” the representative added.
Over the past few years, several stock market training institutes have emerged in Guwahati, catering to people looking to improve their understanding of investments and trading.
An official at the Bombay Stock Exchange (BSE) investor service centre in Guwahati said they regularly conduct awareness programmes to provide financial market knowledge to investors and the general public.
Over the past five years, the Nifty 50 and Nifty 500 stock indices delivered annualised returns of 11.3 per cent and 13.7 per cent respectively, outperforming the country’s annual inflation rate during the period.
Investors generally put their money into financial assets such as stocks, bonds, currencies and gold to protect wealth against inflation and potentially generate returns over the long term.
However, market experts say the growing participation of retail investors needs to be accompanied by greater financial literacy, proper risk assessment and awareness about the difference between investing and speculative trading.