The previous financial year, which ended on Thursday, was a tough one for retail (small) investors, spooked by the sustained volatility in Indian equities.
Participation by these investors hasn’t picked up despite the run-up in equities in 2014 and the early part of 2015, said experts. In contrast, high net worth or wealthy investors (HNIs) used the correction in the market as a buying opportunity.
“The market has been volatile through last year, which is why retail investors have stayed away,” said G Chokkalingam, founder of Equinomics Research and Advisory.
According to estimates, retail cash volumes in FY16 declined on average by 10 per cent over FY15, in a year when the benchmark Sensex slid 9.4 per cent. A deficient monsoon, shaky global markets, sliding global crude oil prices and subdued corporate earnings were key events that impacted Indian equities in FY16. China witnessed a slowing, with the country devaluing its currency to put its economy on a path of recovery.
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