WHY INVESTOR EDUCATION STRUGGLES IN INDIA

THE money invested in investor education programmes has created some awareness.

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One can merely be happy about the ‘somewhat’ progress.

However, you should be concerned about how the money is spent. A comprehensive investor survey released by the Securities and Exchange Board of India, the stock market regulator, shows key barriers to investing in securities market products are complexity and information gaps. Concerns about risk and return are common among even those surveyed who intend to invest.

If you assume the %72 lakh crore worth of mutual fund assets under management, the Sebi regulations mandate setting aside about 0.02%. That pegs the size of the investor education pool at 21,440 crore each year. That is just from mutual funds. The National Stock Exchange manages other investor protection funds, the Bombay Stock Exchange, and the Ministry of Corporate Affairs through the administration of unclaimed benefits.