Slowdown in new demat accounts signals shift to long-term investing

In the past five years, the number of new demat accounts in India has slowed down, which some people think means that fewer people are interested in investing in the stock market.

However, experts like Archit Gupta, the CEO of ClearTax, believe this is not the case.

He explains that the slowdown is actually a good thing because it shows that people are moving away from quick, risky trades and instead focusing on long-term investments.

This is supported by the fact that mutual fund assets and systematic investment plan (SIP) contributions have been increasing.

Additionally, more people are filing tax returns that include capital gains, which means they are keeping their money in the market and seeing it grow.

So, rather than losing interest, India's retail investors are becoming more serious and strategic about their investments.