Investing is a very personal activity, and involves one’s preferences and emotions. Wealth creation is associated with aspirations and financial goals. Involvement of emotions has often resulted in irrational investor behaviour– investing when markets are high and redeeming when markets are low, exactly the opposite of what’s rational.
But over the years, Indian retail investors have clearly made a shift in their investing attitudes and behaviour. As per RBI data, the share of currency and deposits holding in Indian households reduced from 55 percent in FY16 to 51 percent in FY18. And in fact, the share of equity in the pie of Indian household savings increased from 3 percent in FY16 to 8 percent in FY18.
