As many as 2.4 million new dematerialized (Demat) accounts were opened in India in 2016 - the highest since 2008.
Experts are stating that a string of initial public offerings (IPO) and increased demand for mutual funds had attracted investors to financial assets,
Investors from retails sector had chosen to invest in stocks, and reforms such as the upcoming goods and services tax (GST) had encouraged people to open demat accounts.
Indians traditionally prefer gold, real estate and bank deposits.
In 2016, initial public offerings (IPOs) garnered INR 26,493.84 crore in 2016, data from Prime Database showed.
Meanwhile, mutual fund folios in India rose 4.47 percent quarter-on-quarter in the three months ended December 2016 to a fresh record.
As per Association of Mutual Funds of India, mutual funds added 1,64 million folios between October and December last year to touch 50.6 million.
Nearly 3 million Demat accounts opened in 2008, according to data from National Securities Depository Ltd, and Central Depository Services Ltd.
In India, less than 1% of the population invests in stocks either directly or through mutual funds.
