Why did women become interested in the stock market during the Corona period?: Sakina Gandhi, 31, who works in the field of public relations, is very busy these days. She has a new interest in stock market business, for which she continues to work.
Sakina says, "I had a lot of time at home in lockdown, so I used to keep an eye on the stock market during that time. I always wanted to make a thoughtful decision with full knowledge.
"The first 15 days, I only understood the market. Listed some stocks and analyzed what kind of change is happening in these stocks. After talking to some of my colleagues, I bought those shares.
Sakina Gandhi has also invested in mutual funds. His interest in the stock market arose when the stock market was falling badly at the beginning of the Corona epidemic.
He found this very beneficial option and immediately created his Demat account. She wanted to earn extra through this.
Sakina says, "This is my money, there is no interference from my husband or anyone else in this, so I thought why not take some risk." Then let's see what happens.
Sakina says that she watches newspapers every day and has also put a Google alert for companies and stock market-related news.
Sakina Gandhi is not the only one to invest in the stock market for the first time.
Coronavirus has badly affected many businesses, and now they will take time to recover from this shock.
But, the stock market has no complaints about this. Rather, retail investors have increased on a large scale due to falling stock prices earlier this year.
Many Indians who till now were away from the stock market, have also started investing in it.
Like 36-year-old Ritika Shah who stepped into the stock market during the lockdown, Ritika Shah also works in the field of public relations.
Ritika told our sources, "My family has been investing in the stock market and I wanted to do this too, but was waiting for the right time." I got so much time in the pandemic that I could plan my finances. I got time to research and get information about it. ''
He started investing in March when he felt that the price in the market was right.
"It also helps you save tax," says Ritika. I invest 50 thousand rupees every month, and I am planning to increase it by 10 thousand rupees. ''
Increase in retail investors
According to the latest data from the Securities and Exchange Board of India (SEBI), retail investors have increased by 54 per cent this year compared to last year.
Sebi chairman Ajay Tyagi said in a statement to the media, "63 lakh new Demat accounts have been created during April-September 2020 as compared to 27.4 lakh accounts created during this period last year. This means that a 130 per cent increase in Demat accounts.
According to Central Depository Services Limited (CDSL), India's largest trading account depository, investors have opened 5 million new Demat accounts in the first nine months of the year 2020. This number is equal to half of the Demat accounts opened in the last five years.
Broking companies such as Zerodha have seen increased levels of investors. These investors have started using the company's website to invest in the stock market through Demat accounts.
Says Nikhil Kamath, co-founder and CIO of Zerodha, "Since this March, the average Demat accounts opened every month have increased by 100 per cent. This boom has come due to epidemic. ''
Zerodha has 30 lakh active investors, and out of these 10 lakh investors have been involved since the lockdown started (i.e. from March).
Amazing Lockdown and Work from Home
Experts believe that due to the lockdown and work from home, people got so much time to focus on the stock market. He was not able to do this in his daily engagements.
Many people who were also interested in the stock market, they could not keep an eye on the stock market between 9:15 to 3:30 pm due to the office.
Says Nikhil Kamath, "People's stock market due to many reasons like heavy discount prices of strong and large capital base, falling interest rates, real estate, lockdown and free time in work from home have been stable for the past decade. The trend has increased towards
The rapid decline in the mutual fund industry has also encouraged people to invest directly in the market.
Experts also believe that many broking platforms are adopting such technology, which has encouraged investors.
Some other reason
Cheap mobile phones and data have also made it easier for people to access the stock market. Many broking firms are not taking booking fees from investors, and this attracts investors.
Many broking platforms have also started to convince investors about the stock market and help them make the right decisions.
For example, Zerodha has started offering stock market tuition to its investors. Its page views have increased from 45 thousand on average per day to 85 thousand in lockdown.
The biggest reason in this is that SEBI has made the process of opening a Demat account very easy and simple.
With Electronic Know Your Customer (KYC), investors open a Demat account in minutes.
SEBI has also provided e-sign and DG-lockers to protect its documents for first-time investors.
It is interesting to see from Jerodha's data that most of the women are showing interest in online trading.
"There has been a clear increase in new female investors," says Nikhil Kamath. Since the coronavirus epidemic in India, more than 1.5 million clients of Zerodha have been made, of which two lakh 35 thousand are women.
Zerodha has a total of five lakh 60 thousand women investors whose average age is around 33 years.
Similarly, Fires is also a stockbroking trading platform. The number of women traders has increased three-fold compared to before the epidemic in Fires.
Tejas Khode, co-founder and CEO of Fires, told the BBC, "Women prefer investing more than trading. For a long time, women have been investing their money in gold, or they keep the money in cash, fixed deposits and tax-saving mutual funds. However, lockdown and work from home have given them the opportunity to invest in the stock market.
Young people investing
Another interesting trend is that young people are coming forward to online trends.
The Zerodha company says that among investors aged 20 to 30 years, there has been a 69 per cent increase, compared to 50-55 per cent before the coronavirus.
At the same time, the average age of customers of another online booking platform Upstocks has been 29 years between April and August this year. Earlier this age used to be 31 years on average.
Fifty per cent of the investors in Fires are young. Tejas Khode says, "Mobile trading has increased in the last few months since the young people have entered this stock market.
For the first time, we are seeing such a generation, which is giving more time to understand the ways of doing market work rather than following trading tips. ''
According to 5paisa.com, a subsidiary of India Infoline Finance, the average age of 18 to 35 years on its platform has increased to 81 per cent of investors, up from 74 per cent before the Coronavirus epidemic.
Tips for investors
The stock market has always been an attractive area and will continue to attract it even further. But, before taking the step in this field, experts tell some things which all investors should keep in mind.
Nilesh Shah, president of the Association of Mutual Funds in India (AMFI), says investors should look at a company's balance sheet before investing in any share.
They should pay attention to whether the company has enough money to get out of difficult times. Nilesh Shah has been tracking the stock market for 25 years.
Nilesh Shah says, "It is believed that the future is going to be very difficult, so investors should see how strong the company is."
Apart from the balance sheet, investors should also pay attention to the fact that whether the company is constantly trying to reduce the cost of running the business.
Nilesh Shah's third and most important point is how digital is the company? Does the company adopt technology quickly and is digitally strong.