Equity benchmark smashed all records to zoom past the 50,000-mark on the morning of January 21, but the day also recorded another high for the 30-pack index—the total number of investors registered with BSE crossed the 6-crore mark.
Data available with BSE showed that as many as 6,00,92,402 investors were registered with BSE by the morning of January 21, which is 2.98 percent up month-on-month, 7.42 percent up quarter-on-quarter and 27.37 percent up year-on-year.
Maharashtra has more than 1.3 crore registered investors while Gujarat has about 78 lakh.
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As Moneycontrol has been writing, retail investors from Tier-2, 3 cities are flocking the Street. According to Vinay Agrawal, CEO, Angel Broking, the top four performing non-metro cities in terms of retail investors are Surat, Jaipur, Nashik and Ahmednagar.
"Due to low-interest rates, investors are not finding good yields through fixed income instruments. Thus, we are seeing more participation through trading accounts or through mutual fund investments. As on December 20, total demat accounts in the country stood at 4.98 crore, while MF AUM hit an all-time high of 31 lakh crore," Agrawal said.
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Agrawal pointed out the correction in March 2020 was taken as a good opportunity by retail investors to enter the market. Another remarkable phenomenon is that the younger population is coming to the market and women investors are also showing greater interest.
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"We witnessed a growth of 5 times in account opening by women in 2020, compared to 2019. Interestingly, more than 60 percent of these women are first-time investors, with more than 30 percent of Upstox women customers being housewives. Another trend that we believe will continue to see is the rise in the young customer base. More than 75 percent of the existing customer base is below the age of 35," said Ravi Kumar, Co-founder & CEO, Upstox.
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Equity participation from retail investors is here to stay as a large portion of this growth is driven by better internet connectivity, paperless account opening, and easy accessibility through investment apps.
As per Agrawal of Angel Broking, close to 90 lakh new demat accounts were opened in just nine months of FY21 compared to around 50 lakhs in the entire FY20, which shows the interest of the retail population in equity markets.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.