SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • News From Press Have retail investors turned wiser?

    Have retail investors turned wiser?

    They have realised the folly of trying to get rich quick by investing in stocks directly. Now, they are investing in mutual funds via the SIP route
    Source: Business Standard Jan 25, 2016

    The is back to the levels prevailing before Narendra Modi took over as Prime Minister and the rupee is close to its all-time lows in 2013. True, most commentators have already said this is a great opportunity to continue to stay invested in the equity markets and continue making steady as usual.

    But, will the investor rough it out this time? We have examples of past crises where investors who stayed the course reaped the benefits even as the markets continued on its short-term wayward path. After all, the market eventually resumes its upward sloping path in the long run. While the virtues of staying and continuing investments or even increasing investments in equity in these 'bad times' has been oft-repeated, but investors have seldom taken this advice seriously. Things, however, seem to be different this time. This is reflected in the relative calm with which the 20 per cent drop from the peak reached in March 2015 has been absorbed by retail investors.

    So, what has changed so much between 2013 and now?

    For one, retail (small) investors have realised the folly of trying to "get rich quick" by trying their hands at investing in stocks directly. They have started investing through the transparent equity mutual fund route and, more importantly, through the systematic investment plan (SIP) route. Close to 8.6 million SIPs are being executed every month. This is a phenomenal number.

    The true test, however, will come soon. If the market continues its southward journey, whether investors see it as an opportunity or reason to panic. I am sticking my neck out, but I feel the retail investors will not panic even if the index drops further from hereon.

    Click here to read more.

     

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    0 Comment
    Be the first to comment.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.