New Delhi, May 22 -- A huge surge in retail investor participation has been witnessed in Indian capital markets over the past several years, and much of it could be attributed to the growing middle class coupled with rising financial literacy.

Mutual funds and systematic investment plans (SIPs) have become increasingly popular investment vehicles among Indians, particularly for the retail investors, a joint report by industry body ASSOCHAM and rating agency ICRA said.

Indian capital market stands at a cusp of a transformative era, driven by digital advancements, regulatory reforms, and its huge investor base.

Retail investors currently hold about 18 per cent of the total market capitalisation of NSE-listed companies, up from around 11 ...