HDFC SKY Highlights Technology-Led Surge in F&O Participation from Tier 3, Tier 4 India

Mumbai: HDFC SKY, the discount broking platform of HDFC Securities, on National Technology Day highlighted the rapid transformation of India’s futures and options (F&O) trading landscape, driven increasingly by investors from Tier 3 and Tier 4 cities adopting digital investment platforms and technology-led financial tools.

The company said investor participation from smaller towns and non-metro regions has grown sharply in recent years as digital access, financial awareness, and technology-enabled investing platforms reshape India’s retail investment ecosystem.

According to HDFC SKY, non-metro regions, which contributed only around 25 percent of new demat accounts in 2019, now account for over 60 percent of new investor additions.

The company noted that B30 cities — locations beyond India’s top 30 urban centres — contributed 58 percent of new SIP accounts between FY20 and FY25, while mutual fund assets from these regions expanded at an annual growth rate of more than 21 percent to reach ₹14.5 lakh crore by September 2025.

Monthly SIP contributions across the country have also touched a record ₹29,361 crore, with more than half of new investor folios now originating from smaller cities and towns.

India’s total demat accounts stood at approximately 22.5 crore as of early 2026, with nearly half of all new additions coming from Tier 2 and Tier 3 markets.

Similarly, over 3.5 crore mutual fund investors are now based in Tier 3 and Tier 4 regions, indicating a broadening of financial market participation beyond metropolitan centres.

The company said emerging investment activity is increasingly visible in towns such as Mathura, Jhansi, Roorkee, Bikaner, Cuttack, Meerut, Vijayawada, and Bathinda, driven by digital adoption and a gradual shift away from traditional savings instruments.

Within HDFC SKY’s own platform ecosystem, the company said its F&O Dashboard — which provides real-time analytics, advanced charting tools, trading insights, and data-driven market intelligence — has achieved over 95 percent adoption among active traders.

The platform’s user base is largely young and technology-oriented, with around 66 percent of users falling in the 26–45 age group. Female participation on the platform currently stands at 18.5 percent.

Geographically, more than 60 percent of HDFC SKY’s F&O Dashboard users come from states including Maharashtra, Gujarat, Tamil Nadu, Uttar Pradesh, Karnataka, and Telangana.

While Tier 1 cities account for only 16 percent of platform users, Tier 2 cities contribute 23.5 percent and Tier 3 and Tier 4 markets together account for over 60 percent of users, reflecting deep digital penetration beyond metropolitan India.

The company said locations such as Rangareddy, Bhavnagar, Guntur, Kheda, Kolhapur, Amritsar, Raichur, Dehradun, Bharuch, Varanasi, Bhilwara, and Jalandhar have witnessed notable growth in F&O participation in recent years.

Managing Director and CEO of HDFC Securities Dhiraj Relli said technology has fundamentally widened access to wealth creation opportunities across India.

“Today’s investors expect simplicity, speed, and personalised insights irrespective of location. AI-driven advisory services, voice-enabled investing, and faster settlement systems will further accelerate participation from Tier 3 and Tier 4 markets,” Relli said.

He added that the company plans to expand its technology-led investment ecosystem through new offerings including Portfolio Analyzer, Quant Research tools, SKAI — an AI-powered trading assistant — and algorithmic trading capabilities.

HDFC SKY said its broader platform ecosystem includes AI-powered recommendations, real-time portfolio tracking, multilingual interfaces, smart alerts, stock SIPs, ETF investing, margin trading facilities, and integrated research tools aimed at simplifying investing for emerging retail investors across India.