How are Indians investing? Angel One CEO on SIPs, ETFs, AI and wealth creation

India's investing landscape is undergoing a significant shift. Millions of first-time investors have entered capital markets over the past few years, SIP contributions continue to hit record levels, and conversations around wealth creation have moved from boardrooms to living rooms.

Yet despite the growing enthusiasm around investing, Angel One CEO Ambarish Kenghe believes India is still in the early stages of its wealth creation journey.

Speaking on the Prime Venture Partners Podcast, Kenghe shared his views on how Indians are investing today, why SIPs continue to gain momentum, the reality behind the Futures & Options (F&O) narrative, and how AI could eventually transform wealth management for millions of consumers.

Indians are still under-invested in equities

While retail participation in the stock market has increased dramatically over the last few years, Kenghe believes the bigger story lies in how Indian households continue to allocate their wealth.

According to him, a large share of household wealth remains concentrated in traditional asset classes such as real estate, gold and fixed deposits.

"If you look at it broadly, about 50% of people's net worth is in real estate. About 15% will be in gold. About 15% would be in FDs. About 10% or so will be in retirement accounts."

Equities, despite their growing popularity, still account for only a small percentage of overall household wealth.

"About 5 to 8 percent is in equities. That is the headroom for investing."

The contrast becomes even sharper when compared to developed markets.

"In the US that number would be 44, 45%."

For Kenghe, this gap represents one of the biggest opportunities in Indian financial services. As more consumers become comfortable with investing and financial literacy improves, he expects equity participation to continue growing over the long term.

"If you look for the next 25 years, 2047 is when we talk about Viksit Bharat and us being a developed nation. From here to that time, if you look at the growth of world GDP, let's say 100 units are added to the world GDP. Out of that, at least 30 units will come from India."

Why SIPs continue to attract millions of investors

One of the most visible trends in Indian investing has been the rise of Systematic Investment Plans (SIPs). While monthly SIP flows continue to grow, Kenghe believes the underlying motivation is often misunderstood.

Conventional wisdom suggests investors start SIPs to achieve specific financial goals such as buying a house, funding education or planning retirement. In reality, he believes most investors are asking a much simpler question.

"The problem statement is very simple. I've got a thousand bucks. What do I do with it now?"

Rather than chasing complicated investment strategies, many investors are looking for a disciplined way to participate in long-term wealth creation.

"What is the best I can do with it? People are seeing that there is a value of diversification. They are willing to invest in India Inc. in the long term."

He also pointed out that SIPs have increasingly become a proxy for mutual fund investing itself. For many first-time investors, SIPs offer a straightforward way to enter markets without worrying about timing, stock selection or short-term volatility.

"They are thinking, I don't want to lose money. I want to have long-term capital gain and then I can figure out what do I do with it."

Are Indians really only trading F&O?

The rapid rise of retail participation in derivatives markets has sparked concerns across the financial ecosystem. The perception that retail investors are overwhelmingly focused on futures and options has become a common narrative.

Kenghe, however, offered a perspective that may surprise many observers.

During the podcast, he asked Amit Somani to estimate the percentage of Angel One's transacting users who only participate in F&O trading and do nothing else.

When Somani guessed 50%, Kenghe revealed the actual number.

"5%."

The statistic challenges the notion that retail investing in India is driven entirely by speculative trading.

While Kenghe acknowledged the risks associated with derivatives, he also highlighted the breadth of investing activity taking place across the platform.

"People are doing many, many other things and they are all actually making money. They're investing, they're investing in ETFs, they're investing in mutual funds."

He also noted that Angel One has emerged as one of the largest contributors to new SIP registrations in the country.

"We are the second largest providers of new SIP registrations in India."

The next fintech opportunity: a family office for everyone

As India's investing ecosystem matures, Kenghe believes the next wave of innovation will move beyond buying and selling financial products.

Instead, he sees an opportunity to simplify the entire experience of managing money.

"The problem statement is very simple. I've got a thousand bucks. What do I do with it now?"

That question, he argues, extends beyond investing. Consumers also need help with taxes, insurance, estate planning and broader financial decision-making.

"Could you create a family office for me? I can't afford a family office. But if I could, I would."

Traditionally, family offices have been available only to ultra-high-net-worth individuals. They manage investments, tax planning, trusts, wills and succession planning under a single umbrella.

Kenghe believes advances in technology and AI could eventually make similar capabilities accessible to ordinary consumers.

"Money is an enabler. You don't want to manage it."

The opportunity, according to him, lies in creating trusted systems that can remove complexity from consumers' financial lives while helping them make better long-term decisions.

How AI is changing the investing experience

Like many industries, financial services is increasingly embracing artificial intelligence. At Angel One, Kenghe sees AI influencing everything from customer engagement to product development.

One recent example is Ask Angel, the company's AI-powered assistant designed to help users navigate investing information more efficiently.

"The idea is that it can get you contextual information."

Depending on where a user enters the experience, the assistant can provide different forms of guidance, whether it relates to a specific stock, market information or customer support queries.Beyond customer-facing products, Angel One is also applying AI across internal operations.

"Our email responses to customers, our customer support chatbot, all of these operations behind it are also AI enabled."

The technology is also being used by engineering, product, marketing and design teams to improve productivity and accelerate development.

India's wealth creation story is just beginning

For Kenghe, the long-term outlook remains clear. India's digital payments revolution brought millions of people into the formal financial system. The next challenge is helping them participate in wealth creation.

Despite market cycles, economic uncertainty and changing technologies, he remains optimistic about the country's trajectory.

"If you're thinking for the long term, it's always a great time in India."

The combination of economic growth, rising financial literacy, increasing equity participation and new technology-driven experiences could create opportunities that did not exist a decade ago.

For investors, entrepreneurs and fintech companies alike, Kenghe believes the journey is only beginning. The real opportunity lies not just in moving money, but in helping millions of Indians make better decisions about what to do with it.