240% jump in unique investors on NSE in 6 years from FY2019 to FY2024: Eco Survey Economic Survey 2023-24
6.5 crore -- That's the number of investors with unique PANs who entered the Indian stock market in just five years. According to data quoted in the Economic Survey 2023-24, the number of unique tax IDs registered on the National Stock Exchange (NSE) rose from 2.7 crore in FY19 to 9.2 crore in FY24. Going by the trend, a significant portion of the new investors are expected to be retail investors. What's even more surprising is that a majority of these new retail investors are likely to be young and have a higher appetite for risk.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} #Budget' 2024 with ET
Union Budget and Economic Survey 2024 Live Updates
Economic Survey Highlights: Reading between the lines
Economic Survey on if India can fill mfg void left by China
According to the survey, which was released on July 22, 2024, such enhanced participation of retail investors lends stability to the capital markets. "It has also enabled retail investors to earn higher returns on their savings. Most of the new retail investors are likely young and may have a higher risk appetite," stated the Economic Survey.
'Young retail investors' chasing money making opportunities in derivatives trading
According to the survey, derivatives trading holds the potential for outsized gains. Thus, it caters to humans' gambling instincts and can augment income if profitable. These considerations are likely driving active retail participation in derivatives trading."It is also reflected in the interest that retail investors have shown in derivatives trading, especially expiration-day trading. While derivatives are hedging instruments, they are mostly used as speculative instruments by investors worldwide. India is likely no exception," said the survey.
However, globally, investors lose money in derivatives trading, for the most part. This is where the survey highlights the need to educate investors. "Raising investor awareness and continuous financial education is essential to warn them of the low or negative expected returns from derivatives trading. A significant stock correction could see losses that are more considerable for retail investors participating in capital markets through derivatives. Investors' behavioural response would be to feel 'cheated' by unseen more considerable forces. They may not return to capital markets for a long time. That is a loss to them and the economy," according to the Economic Survey.
#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} #Budget' 2024 with ET
Income Tax Expectations from Union Budget 2024
This story originally appeared on: India Times - Author:Faqs of Insurances
