A CULT FOLLOWING

The illustrious journey of the last 14 years is essentially a tale of higher financialization of household savings and ease of investing

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One of the key developments in the past decade and a half has been the rise of retail investors as a noticeable force in the markets. Gone are the days when investing in the markets was a skill known to a few learned and well-connected group of people.

As we celebrate 14 years of our magazine, things have changed materially and drastically. Today, retail investors have recognized the importance of investing in the markets as a clear alternative to fixed deposits and other avenues, which provide low and stable returns.

In this context, it will be an interesting exercise to understand the journey of retail investors from a reluctant participant a decade back to a conscious and increasingly aware investor. Let us understand this journey in greater detail:

THE TRIGGERS

One has to understand why the participation of retail investors has increased in the past decade and a half. Let us understand this in four different aspects:

Changing Profile Of Investors 

There is a marked shift in the profile of investors who invest in markets. Young investors have selected the stock markets for investments. They are no longer married to traditional modes of investments. An increasing number of millennials and Gen-Z investors have started investing in the markets. Quite noticeably, studies and data show that there are an increasing number of investors who are under the age of 25.

Thanks to access to information over the internet, these investors are investing right from their first salary of their first job. Also, according to various researches and studies, most of the new investors who have begun investing in the markets are from tier-Il and tier-III cities.

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