2022, Vol. 3, Issue 2, Part C
Indian stock market: A study on rise of retail investors
Author(s): Shubham Khandal
Abstract: Indian stock market crashed in March 2020 due to covid-19 pandemic and after the market crash, Number of Demat accounts in India have increased sharply. In March 2020, the number of demat accounts in India stood at 4.09 crore which reached 10 crore in august 2022. This explosive growth has increased stake of retail investor in the Indian stock market which was earlier dominated by FII and DIIs. Retail investors now account for 52% of daily transactions in the market. This rise in retail investor participation enables investors to participate in wealth creation happening through the capital market. Earlier retail investors used to deposit their money into banks and banks used to provided that money in form of credit to corporates at higher rate of interest. But now retailers are directly investing their money in corporates through equity, mutual funds etc and getting returns in form of dividends and price gain. It channelize saving from unproductive assets like gold into productive investments like equity and debt instruments, thereby contributing to higher capital formation and economic growth. Tradition methods of savings like fixed deposit, PPF, NSC etc. guarantee a fixed return with almost no risk but on the other hand, investments in share market have high risk associated with them. Investors are willing to take that high risk due to higher rate of returns which may vary from investment to investment. Many investors have made much higher gains in the share market than fixed income options provided by banks/government or other financial instruments. The researcher has made an attempt to understand reasons of this rise in retail investments and other aspects like investor awareness, goals and types of investments made by retail investors of Delhi. The study is based on primary data that has been collected through structured questionnaire filled by 200 respondents of Delhi.
Pages: 192-196 | Views: 408 | Downloads: 287
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How to cite this article:
Shubham Khandal. Indian stock market: A study on rise of retail investors. Asian J Manage Commerce 2022;3(2):192-196.