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Retail Indian Investor Participation at Multiyear High
May 9, 2018

Last week my colleague Ankit wrote to you about the rise of the Indian retail Investor.

As he rightly said, factors like demonetization and dull returns from other assets have brought the aam investor into equity markets.

Ankit also told you about, starting from the financial year 2014-15, the paradigm shift in investments in to mutual funds.

However, over the weekend I came across something interesting.

Apart from this, there is phenomenal growth in active brokerage accounts as well i.e. direct equity participation.

As data from the National Stock Exchange shows, the number of active brokerage accounts in India which grew at a 12% annualised rate over FY14-17, grew 40% in FY18.

This means, apart from mutual funds, retail participation in direct equity has increased considerably.

Now, it is said retail investors are usually last to participate in a bull run. In fact, just yesterday, Sarvajeet showed you how retail investors have burned their hands in stocks like Gitanjali Gems, Vakrangee etc.

But he also made an interesting point about why subscribers to Smart Money Secrets are lucky.

Because we believe, India's top 40+ super investors, make sure they don't invest their own money in a company with lower corporate governance standards.

And we track them closely.

Then, using our smart money indicators, we narrow down their choices to just one stock per month.

Data Source: National Stock Exchange

This Chart Of The Day was published in The 5 Minute WrapUp - Rahul Shah and I Debate These Recommendations... Who is Right?

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