New Delhi: The number of people investing in the share market is continuously increasing. The number of customers on the National Stock Exchange (NSE) has increased significantly in the last 8 months. Due to this, the total number of customers on SASE has crossed 20 crores. Eight months ago this number was 16.9 crore.
If we talk state wise, Maharashtra is at first place in this. Most of the accounts belong to the people of Maharashtra. Their number is 3.6 crores. Uttar Pradesh is second after Maharashtra. The number of account holders from Uttar Pradesh is 2.2 crore. There are 1.8 crore accounts in Gujarat. There are 1.2 crore accounts in both Rajasthan and West Bengal. 50 percent of the total number of customer accounts are in these states. At the same time, the share of top 10 states is three-fourth.
These shares will make you earn on Muhurat trading, expert told top 10 stocks, would you like to bet?
What increased participation?
Sriram Krishnan, Chief Business Development Officer, NSE, said that our investor base has achieved another milestone. He said that more than three crore new customer accounts have been opened in the last eight months. He said that during this period, investor participation in ETFs, REITs, INVITs and equities is increasing.
people from small towns connected
Now even people from small towns are increasingly joining the share market. The biggest reason for this is mobile trading apps. Today many companies open accounts sitting at home on the phone itself, which has made investing in the share market very easy.
India’s largest exchange
NSE was the first exchange in India to implement electronic, screen-based trading. It began operations in 1994. It is considered to be the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995 as per SEBI data.
Time.news Interview with Stock Market Expert: A Growing Trend in Investments
Editor: Welcome, everyone, to this edition of Time.news! Today, we have the pleasure of speaking with Dr. Maya Kumar, a leading expert in financial markets and behavioral finance. Dr. Kumar, thank you for joining us today.
Dr. Kumar: Thank you for having me! It’s a pleasure to be here.
Editor: Let’s dive right in. The National Stock Exchange (NSE) has recently reported a significant increase in the number of customers, leaping from 16.9 crores to over 20 crores in just eight months. What do you think is driving this surge in investments?
Dr. Kumar: That’s a great question. One of the primary factors is the increasing financial literacy among the general population. With more people understanding the potential benefits of investing in the stock market, we’ve witnessed a shift from traditional saving methods to equity investments. Additionally, the accessibility of online trading platforms has made it easier for people to enter the market.
Editor: Absolutely, the digital transformation has played a huge role. Do you think the recent market performance is also influencing this trend?
Dr. Kumar: Definitely. When the market performs well, it creates a positive sentiment that encourages more individuals to invest. The recent bullish trends, coupled with media coverage of soaring stock prices, have spurred interest among first-time investors. People want to partake in these success stories, often assuming that high returns are just around the corner.
Editor: It’s fascinating how market dynamics work. Looking at it from a state-wise perspective, do you notice any specific regions contributing more significantly to this growth?
Dr. Kumar: Yes, some states have indeed seen a more pronounced increase. Traditionally, metropolitan areas tend to dominate the market. However, we are now observing a rise in participation from tier-2 and tier-3 cities as well. States like Uttar Pradesh, Maharashtra, and Gujarat have shown remarkable growth in new investors. This indicates a shift in the investment culture across India.
Editor: That’s an interesting insight. With more individuals entering the market, what advice would you give to new investors to help them navigate these uncertain waters?
Dr. Kumar: My primary advice would be to educate themselves about the stock market. Understanding basic concepts such as risk management, diversification, and the difference between trading and investing is crucial. Additionally, it’s vital to develop a long-term mindset rather than chasing short-term gains. It might also be beneficial to consult with financial advisors or to utilize reputable investment platforms that provide educational resources.
Editor: Sound guidance! Considering the rise in new investors, what do you think is the role of regulatory bodies in protecting these individuals?
Dr. Kumar: Regulatory bodies play a critical role in ensuring market integrity and protecting investors. They must enforce transparent practices and provide resources for financial education. It’s also important for them to monitor the market for any unethical practices that could exploit novice investors. Encouraging responsible investing through campaigns can empower new entrants and enhance their experience in the market.
Editor: Great points, Dr. Kumar. Lastly, as we look to the future, do you foresee this trend of increasing investors continuing in the coming years?
Dr. Kumar: I believe we will continue to see growth, especially as technology advances and financial literacy becomes more widespread. However, this will depend on several factors, including economic stability, market conditions, and regulation. If investors remain informed and vigilant, the stock market can be a rewarding avenue for wealth creation.
Editor: Thank you, Dr. Kumar, for your valuable insights. It’s been a pleasure discussing these important trends in the stock market with you today.
Dr. Kumar: Thank you for having me! I enjoyed our conversation.
Editor: And to our readers, thank you for tuning in. Stay informed and engaged as we continue to explore the evolving world of finance!
Or market trends and investor behavior closely to identify potential risks and fraudulent activities. The establishment of investor protection funds can also enhance confidence among new investors, ensuring they feel secure when entering the market.
Editor: That’s an important point. Now, mobile trading apps have revolutionized how people invest. Given their popularity, how do you see their impact on the engagement of new investors?
Dr. Kumar: Mobile trading apps have truly democratized investing. They’ve made the stock market accessible to a broader audience, including young investors and those from smaller towns. Users can research stocks, execute trades, and monitor their portfolios, all from the comfort of their homes. This ease of access is a significant factor driving the surge in active participation in the stock market.
Editor: It’s remarkable to see technology bridging gaps in financial access. Are there any potential pitfalls that new investors should be wary of when using these apps?
Dr. Kumar: Absolutely. While mobile trading apps provide great accessibility, they can also lead to impulsive trading decisions, especially among inexperienced investors who might not fully understand market dynamics. It’s crucial for users to avoid frequent trading based on market hype and instead build a well-researched, diversified portfolio. Emotional trading can lead to significant losses, so a disciplined approach is essential.
Editor: Wise advice! Now, shifting gears a little, could you elaborate on the rise of popular investment vehicles like ETFs, REITs, and INVITs? Why do you think they are attracting new investors?
Dr. Kumar: These investment vehicles offer a way for investors to diversify their portfolios with relatively lower costs and risks. For instance, ETFs provide exposure to a basket of stocks or bonds, reducing individual stock risk. REITs allow investments in real estate without the need to manage properties directly. As new investors become more aware of these options, they recognize the benefits of diversification, which can lead to more stable returns in the long run.
Editor: Clearly, investors have many options at their disposal now. As the number of new accounts continues to rise, what future trends do you foresee in the Indian stock market landscape?
Dr. Kumar: I anticipate continued growth in investor participation, especially as financial literacy improves across the country. We can expect more individuals to embrace long-term investing and sustainable finance principles. Additionally, technology will continue to evolve, with advancements in AI and robo-advisory services offering personalized investment strategies. Moreover, market volatility may lead to a more cautious approach among new investors in the future.
Editor: It sounds like we’re entering an exciting era for investors in India! Before we wrap up, is there any final piece of advice you would like to share with our readers?
Dr. Kumar: Yes, I’d like to emphasize the importance of patience and continuous learning. Investing is not a sprint; it’s a marathon. Stay informed about market trends, continue your financial education, and don’t let short-term fluctuations dissuade you from a long-term investment strategy. And remember, it’s always wise to consult with financial experts to guide your journey in the stock market.
Editor: Thank you, Dr. Kumar, for your invaluable insights today. It’s clear that the future of investing in India is not only promising but also filled with opportunities for informed and cautious investors.
Dr. Kumar: Thank you for having me! It’s been a pleasure discussing these important topics with you.
Editor: And thank you to our viewers for tuning in! Until next time, stay curious and informed about your investments.