The
chart shows that retail investors' share in the market capitalisation of
actively traded stocks on the BSE has been on the decline and is currently
the lowest in last few years. The proverb 'once bitten, twice shy' quite
explains the story. If you look at the numbers, retail investors held 19% share
of the market capitalization in 2006. Then the market crashed in 2008 and since
then their share has been on the decline. It is a clear indication that the
volatility in the stock markets has put off retail participants.
It also tells that to get most out of such volatility Mutual Fund SIP would have surely helped & if it was one with 'Goal Orientation' & 'Asset Allocation', one would be reaping its benefits. It also clearly tells that retail investors are actually flowing with the markets but if they flow against the tide, they will make more wealth. "Remember, that by following the masses one cannot be the winner, only acting smartly & wisely will make you the one."
It also tells that to get most out of such volatility Mutual Fund SIP would have surely helped & if it was one with 'Goal Orientation' & 'Asset Allocation', one would be reaping its benefits. It also clearly tells that retail investors are actually flowing with the markets but if they flow against the tide, they will make more wealth. "Remember, that by following the masses one cannot be the winner, only acting smartly & wisely will make you the one."
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| (As on 31st March, 2011)
Data source: Business Standard |