New investors will be well advised to stay away from smallcaps and penny stocks and should not buy stocks based on a tip and SMS messages, says the Co-founder & CIO, Zerodha.
What kind of traction are you seeing? We have seen a lot more action in mobile trades as well with investors flocking to equity markets. Do you see further emphasis on mobile and digital and does that help to boost volumes further?
The trading will continue to move away from traditional EXE-based platforms onto mobile and web platforms. We see this trend continuing. In terms of the account opening and new investor interest which is coming into the market, it is a factor of many things.
A lot of it has to do with the interest rate cycle, how quickly interest rates have gone down and bank FD is no longer as appealing as they used to be. The plateauing of real estate yields in the last five years have not left many avenues for a retail investor to seek alpha. So this trend of people coming into the stock market is set to continue and with time we expect more retail participants.
How are you managing the platform? Do you look to make any changes on the backend to cope with the massive flow of investors that you are expecting to see?
We have ensured that we have significant capacity in place to enable us to facilitate trading seamlessly. We continue to look at any means by which we can improve the efficiencies of our platforms.
There has been positive exuberance and the sentiment is reflected in the higher trading activity that one has seen in the last two, three months. Are millennials driving the rally or do you think that the trend is positive and buoyant across all age cohorts?
The trend is buoyant amongst many age groups or all the age groups. We have seen the average age of our investors drop from 32 to about 30, but one has to bear in mind that retail investors will be well advised to stay away from small cap companies, penny stocks and stocks which one might end up buying based on a tip and SMS messages and stuff like that.
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People will be a lot better placed if they allocate a significant portion of the new capital coming in to quality largecap companies. This is something that new investors should bear in mind and that will be beneficial for the entire ecosystem as well.
We see a lot of HNIs and ultra-HNIs moving to alternative funds: Nikhil Kamath
Many retail investors choosing to invest directly and avoiding AMCs, says the Co-founder & CIO, Zerodha
The recent AMFI data indicated a dip in equity flows for mutual funds with HNIs moving out of mutual funds. How are you assessing the flows in mutual funds as well as the SIP category? Do you see the focus shifting to alternate fund managers instead?
A part of the downtick in flows that AMFI has recorded, can be attributed to the liquid fund exits that we saw because of declining interest rates. We do see people going into the alternate funds and this is a certain category of people who generally fall in the HNI and the ultra-HNI bucket.
But with a lot more time in hand, many retail investors are also choosing to go the direct path and avoiding the inefficiencies that a typical asset management company might have brought in by virtue of having a lot of fees and middle men in between.
Markets traditionally have been forward looking. The market price reflects more of what will happen a couple of years down the line and not necessarily the earnings and the news flow of today. The same might be repeating right now. It looks like investors are looking beyond the crisis and what may develop once the crisis is over.
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We seem to be very closely linked and following the global indices because they might be at a more evolved state of the coronavirus because they had the peaks or a lot more exaggerated issue of corona there earlier than we had in India. It is very hard to question price action because traditionally when markets move ahead of news events, more often they may not have been right and I guess only time will tell if this move holds on in the next year or two.
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FAQs
We have seen the average age of our investors drop from 32 to about 30, but one has to bear in mind that retail investors will be well advised to stay away from small cap companies, penny stocks and stocks which one might end up buying based on a tip and SMS messages and stuff like that.
What is the average age of investors in India? ›
Majority of the retail investors fall in the age group of 22 to 35, as they strive to maximise their earnings from investments.
Who is the youngest successful investor? ›
One of the most successful and young investors in the world is probably someone like Alexandra Andresen, who inherited a fortune from her family's investments in tobacco. She became one of the world's youngest billionaires at a very early age.
When did Nikhil Kamath become a billionaire? ›
Kamath is a part of the 2023 Forbes billionaires list.
Is 25 too old to invest? ›
No matter how old you are, the best time to start investing was a while ago. But it's never too late to do something. Just make sure the decisions you make are the right ones for your age—your investment approach should age with you.
What is the average age of a millionaire in India? ›
The average Indian millionaire is just 32 years old, according to the latest Hurun India Luxury Consumer Survey 2023.
Who is the 27 year old billionaire in India? ›
Meet Pearl Kapur, at 27, he stands as India's youngest billionaire, carving his name in the annals of entrepreneurship. Pearl Kapur, a Queen Mary University of London graduate with an MSC in Investment Banking (CFA Pathway), started his entrepreneurial voyage in May 2023.
How many billionaires under 30? ›
That's according to Forbes' billionaires list for 2024, which features 15 individuals with 12-figure wealth aged 30 or under—who have a combined fortune worth nearly $45 billion.
Who is the 92 year old investor? ›
Investors shouldn't expect a change of leadership at the top of Berkshire Hathaway anytime soon, even though Chairman Warren Buffett is 92 and his partner Charlie Munger is 99, one longtime board member said Thursday.
Who is World No 1 investor? ›
Warren Buffett is often considered the world's best investor of modern times.
Rakesh Radheyshyam Jhunjhunwala (5 July 1960 – 14 August 2022) was an Indian billionaire investor, stock trader, and Chartered Accountant. He began investing in 1985 with a capital of ₹5,000, with his first major profit in 1986.
Where do millionaires invest in India? ›
“The prime residential assets continue to be the mainstream investment avenue for ultra-wealthy individuals in the country. Indian ultra wealthy are gravitating towards ESG oriented strategies for investments in commercial real estate.
Who is the 17 year old Indian billionaire? ›
Nikhil Kamath, India's youngest billionaire, leads the pack with a net worth of $3.1 billion, according to the Forbes Billionaires List 2024.
Is Nikhil Kamath a dropout? ›
Nikhil Kamath, a school dropout, took up his first job at a call centre later and then began to trade stocks. And later when the Kamath brothers founded Zerodha in 2010 everything changed. In an interview with South China Post he said: "Timing is everything.
Is Nikhil Kamath a good trader? ›
During a recent podcast, his brother Nithin Kamath said that the company was 'not meant to become what it is today'. “I quickly realised that Nikhil is a better trader than I am because at that point of time we were trading money and I was also doing this side hustle of broking business.
What is the average age of investors? ›
Beginner investor demographics
| Age | Percentage of first-time investors |
|---|
| 25-30 | 27.0% |
| 31-36 | 25.9% |
| 37-45 | 16.5% |
| 46+ | 10.6% |
1 more rowFeb 6, 2023
Investment choices and early adoption: Among surveyed individuals aged 21-25, over 60% show a preference for fixed deposits and the stock market, whereas 82.85% of those in the 26-35 age range favour mutual funds.
How many people in India are investors? ›
Latest data from the National Stock Exchange (NSE) showed that the country had 87 million investors as of January 31, 2024, against 17.9 million investors at the end of March 2015, up nearly 389 per cent. Meanwhile, Uttar Pradesh (UP) registered a substantial rise in investors during the same period.
Is 32 too old to start investing? ›
The fact is, getting started investing in your 30s isn't a bad thing. Yes, it would have been great to start earlier. But on the flip side, it's better than starting later! At 30, things in your life start to dramatically change, especially when looking back at your college years.
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