The markets are in no mood to continue the recovery they displayed in April with May trying to make investors realise the ground realities faced by the economy. However, the recent volatility in the markets has done what few would have imagined – it has led to record opening of demat accounts! Yes, it is true that the pace of new demat account opening has increased in March and April, as is evident from the data provided by the Central Depository Services Limited (CDSL). What is more interesting to note is that the spur in account opening is also being witnessed in the US markets.
Discount brokers like Charles Schwab, TD Ameritrade and Etrade have shown increase in trading accounts for Q1 2020 when compared to a similar quarter a year back. In fact, the jump in accounts for Charles Scwab, TD Ameritrade and Etrade is 58 per cent, 149 per cent and 169 per cent, respectively. This happened in the Q1 of 2020 (CY) when the markets entered into its fastest bear phase in history and the DJIA fell by close to 35 per cent. The data of the US markets reveal that first-time investors who are mostly inexperienced opened online broking accounts. These fresh investors saw the downturn created by the pandemic as as an opportunity to enter the markets.
This story is from the May 25, 2020 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 25, 2020 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Base Rate Investing: The Smart Investor's Secret
Base rate investing offers a distinct advantage to investors encouraging them to look beyond the noise and focus on underlying fundamentals and longterm trends. The article explains how by understanding and applying this strategy effectively, you can make informed investment decisions and potentially outperform the market over time
Back To The 'All is Well' Feeling
Domestic indices hit record highs on the back of robust performance in real estate, power, metals and automotive sectors
Should Commodity Funds Be Part Of Your Portfolio?
Commodities serve as tangible assets that offer investors a means to engage with the real economy and provide a degree of insulation from financial system disruptions. In this scenario, multi-asset allocation funds represent a more efficient vehicle for commodity exposure compared to hybrid schemes. Here are the details
Asset Allocation & Diversification
Remember, when you diversify your investments, you minimise the chances of suffering from what is known as 'single security risk', or the risk that your investment will fluctuate widely in value with the price of one holding.
Does AUM Size Matter?
Investors generally focus on a fund's past returns. They think that a larger fund is better. On the flip side, some investors raise concerns about whether a fund can sustain its strong performance after growing to a substantial size. What is the reality? Rakesh Deshmukh takes a closer look at the scenario
Ten Commandments of Wealth Creation
Financial Planning
Gold Glitters Amid a Narrow Range Trading
Over the last two weeks, the commodities market displayed cautious activity with investors trading within narrow margins, eagerly awaiting pivotal economic data and insights from Federal Reserve officials.
Can Global Equities Sustain the February Momentum?
Even though the markets touched new highs in February, they did experience some challenges, notably in the bond sector, which faced difficulties due to an uptick in interest rates.
"Future outlook of railways and railway wagons industry appears promising"
Umesh Chowdhary Vice Chairman & Managing Director Titagarh Rail Systems Limited
Metals and Mining: Poised For A Steely Performance
While investors were drawn to the impressive rally in metal stocks, the recent interim budget indirectly bolstered the metals industry with substantial announcements in infrastructure, real estate, defence and railway sectors, which are known for their extensive use of metals. Mandar Wagh explores the future prospects of the industry, analysing financial performance, risks and growth triggers