Retail Investors: Showing Their Savvy in the Market

Ninad Ramdasi / 13 Jun 2024/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, MF - Editorial, Mutual Fund

Gone are the days when retail investors were stereotyped as reactive players entering at the peak of the market and fleeing at the first sign of trouble.

Gone are the days when retail investors were stereotyped as reactive players entering at the peak of the market and fleeing at the first sign of trouble. Today’s investor is demonstrating a newfound maturity, and the events of June 4 serve as a prime example. While exact figures await next month’s reports, the sheer volume of investor activity on June 4 speaks volumes. Many platforms experienced overloaded systems, preventing some investors from capitalising on the lower net asset value (NAV) that day. [EasyDNNnews:PaidContentStart]

This was particularly true for those using specific online platforms, resulting in NAVs being applied for the following day. This surge in activity highlights two key trends: the rise of the tech-savvy retail investor and their growing confidence in the equity market story. Investors are no longer passive bystanders, but active participants ready to seize opportunities arising from market fluctuations.

This shift is further reinforced by AMFI’s data for May 2024. Equity mutual fund inflows witnessed a record-breaking 83.42 per cent increase, reaching a staggering Rs 34,697 crore. This near-doubling of inflows compared to the previous month is driven by robust collections through new fund offerings and sustained contributions via systematic investment plans (SIPs). Retail investors are coming of age, and the mutual fund industry is reaping the benefits of their growing knowledge and confidence.

Now, investors recognise that mutual funds can effectively help achieve both short-term and long-term financial goals. Among these goals, retirement planning stands out as a key long-term objective that can be addressed through mutual fund investments. However, there are several other instruments available for retirement planning. Our cover story this time focuses on one such instrument: the National Pension Scheme (NPS). We delve into the circumstances in which NPS or mutual funds may be more advantageous and provide guidance on who should choose which option. We hope our insights will assist you in making informed financial decisions.

Shashikant Singh
Executive Editor

[EasyDNNnews:PaidContentEnd] [EasyDNNnews:UnPaidContentStart]

To read the entire article, you must be a DSIJ magazine subscriber.

[EasyDNNnews:UnPaidContentEnd]