To get the advantage of Stock Market crash which happened in March, new investors are taking interest and trying in Stocks. While old traders are moving to new equities.
A sharp surge has been reported by brokerage companies, in new the opening of new demat accounts. In Zerodha, the number of demat accounts which were opened during January to May has now exceeded the overall client growth figures of last year.
Co-founder and chief investment officer of Zerodha, Nikhil Kamath, said that the average age of these new retail investors has been reduced to 30 and the average ticket size to about ₹80,000.
“Retail investors, after a long time, seem to have come into the markets after a crash, buying large-cap bluechip equity amidst the fall in between 8000-9000 Nifty and are seeing substantial returns. This is a big positive for the ecosystem overall and could lead to increased participation from retail in the days to come,” Kamath told Livemint.
“This could be a factor of COVID, and the additional time retail investors have at hand,” he said.
“We see a flight to quality, and investors are moving away from small-cap and penny stocks, ignoring SMS tips etc., which generally are a recipe for disaster. This, I believe, is extremely positive for the market’s overall; tipsters typically erode significant investor wealth and often serve an ulterior motive. To research and allocate capital to blue chip companies with a long term outlook is something we would suggest to all our investors,” Kamath, owner of True Beacon, an asset management company in Alternate Investment Fund (AIF) space, said.