Most of the growth came during the Covid-19 pandemic, which left people working from their bedrooms and living rooms.
Here’s a fun fact: the number of retail accounts and the Nifty 50 tripled in value almost at the same time. (Of course, we aren’t saying they were doing all the buying!)
And, tbh, this unprecedented level of participation by small and individual investors can be a double-edged sword.
Investors from India’s second- and third-tier cities investing their salaries and savings without adequate financial nous are bound to lose. Don’t take our word for it: the Indian market regulator recently found that nine out of 10 such investors are losing money. Big time.
Read More: It still takes courage to be a Paytm bull – MONIIFY
On the other hand, systematic investment plans are adding anywhere between $2.5 billion to $3 billion to mutual funds every month. These funds also cushion the market from big drawdowns.
Who’s ACTUALLY laughing their way to the bank? Asset managers and stock brokerages. So, while you can only listen to Money, Money, Money by ABBA, these guys are living in that rich man’s world.
