What Percentage of People Invest in the Indian Share Market?
In the early days, there was a myth among the Indians that investing in the Indian share market posses risk exposures associated with frequent market shifts. Based on these false claims, only less population of India were aware of the benefits gained through stock market while the majority population opted for fixed deposits, gold savings and schemes, etc.
But now, amidst the pandemic crisis, millions of young Indians have started to invest their valuable savings in the stock market. In 2020, the active investors account in India rise up to 10.4 million and this resulted in helping almost 1500 companies listed in NSE to jump by 9 percent growth in the third quarter of 2020.
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Percentage of People Investing in Indian Share Market:
India holds a population of 1.36 billion people and only 3.7 percent of its population has invested in equities when compared to 12.7 percent of equity investors in China. According to the latest survey conducted in the United States, about 55 percent of the US population holds stocks either individually or through mutual funds.
In a recent interview with an emerging market investor, Mark Mobius, said that “India could easily equal China’s market cap in the next 5 to 10 years because going forward, growth in India’s market will probably be faster. China, because of its size, will probably grow more slowly”.
India’s retail trading boom has been fueled by pandemic-driven restrictions and job losses that led many people to invest in the stock market. With a drastic development in technology across the country, the rise of cheap trading apps and social media has influenced day traders to engage efficiently in trading. Many of the new entrants in the stock market are living outside Mumbai and Delhi.
These new entrants are tier 2 and tier 3 city investors who wish to choose long-term stocks in their view of market. The New entrants tend to invest more funds when the market is down in comparison with the city living investors.
Why do People prefer to Invest in Share Market?
There are certain key factors that make people invest in the share market:
- People are now choosing to invest in mutual funds and other trading options for higher returns rather than investing in fixed deposits and other low interest saving schemes.
- Due to the increase in global liquidity, people prefer to invest their savings in the stock market.
- As there has been a significant rise in the market capitalization, the Indian stock exchange BSE Sensex has witnessed an increase of 1.8 times in its value when compared to the previous financial year.
- During the pandemic period, people have become aware of the benefits that are associated with stock market investment through stock trading platforms.
Investing in the Share Market:
Investing your valuable savings in the stock market can help you to gain more funds for your future needs. But, choosing the best-performing stocks in the market is not an easy task as you need to be more focused on the latest market trends and updates. Be cautious while performing your trade as you should not make trading decisions based on emotional value.
If you’re new to the share market and you’re not aware of the market shifts, then it’s better to seek guidance from experts like Goodwill. Backed by years of trading experience, the experts at Goodwill offer expert strategies to their valuable investors at lowest brokerage charges. To know more about Goodwill, click here!
For more info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly and efficiently. Stay connected with Goodwill’s Facebook Page and get instant live updates on your stocks.