As terrible as covid-19 was for the world, a positive outcome was that stock markets piqued the interest of the youth in India. As work-from-home ensued and stock markets rallied, retail investor participation in Indian equities skyrocketed. From just 4 crore demat accounts in FY20, the number of demat accounts in FY24 jumped 350% to a whopping 140 million.
While this rise in retail investor participation indicates a shift in stock market dynamics, it doesn't necessarily mean that financial literacy has improved. Before covid-19, it was difficult to get individuals to start investing in stocks. But now, the problem has reversed. Given the supernormal returns delivered by the stock markets since 2020, 200% in about five years, it has now become a task in itself to convince investors to take a step back from stock markets, even when taking a step back is crucial.
This story is from the January 08, 2025 edition of Mint Hyderabad.
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This story is from the January 08, 2025 edition of Mint Hyderabad.
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