The current environment for the capital markets is extraordinarily positive, with prevailing bullish sentiment.
We are in the midst of one of the most significant revolutions, as retail investors, who historically stayed away from the market, are now participating in unprecedented numbers.
Demat accounts skyrocketed from 40 million (4 crore) in 2020 to 160 million (16 crore) today
This surge was catalysed by the seamless digital onboarding process that emerged during the COVID-19 pandemic.
This process allowed investors to open a demat account and start investing in mere minutes.
Consequently, the market saw a dramatic increase in the number of new investors, with monthly figures rising from three lakh to four million.
Last month, 4.2 million new accounts were opened due to enhanced digital infrastructure
In the last four years, the retail investor base has expanded from 40 million to 163 million, with projections suggesting it could reach 300 million (30 crore) in the next three to four years
This influx of retail investors means a significant portion of household financial savings is now being funnelled into the market.
A key catalyst for this incredible growth is one of SEBI’s noteworthy initiatives, which is prioritising capital formation, making it easier for retail investors to invest and ensuring low costs, thereby maximising net returns for even the smallest investors.
India is now witnessing a revolutionary phase in equity investment.
As this capital is injected into the economy, substantial growth follows
This dynamic is driven by our economy’s two key groups: entrepreneurs and consumers.
Entrepreneurs create what consumers demand, thereby driving economic growth.
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