Market experts said that an average of 4 lakh new demat accounts were opened every month in 2019-20, which increased to more than 26 lakh per month in this financial year.
According to the Economic Survey, the Indian securities market has seen a significant increase in the interest of retail investors, as 2.21 crore individual demat accounts were added in April-November 2021, owing to the buoyancy in the stock market.
“With the continued boom in Indian stock markets, there has been an increase in the participation of individual investors in the equity cash segment and the share of individual investors in the total traded on NSE increased from 38.8 per cent in 2019-20 to 44.7 per cent in April-October 2021. ,” noted the survey.
The substantial increase in the share of individual investors in 2020-21 and 2021-22 can be partly attributed to the increase in new investor registrations seen since February 2020.
In April-November 2021, around 221 lakh individual demat accounts were added, as mentioned in the Economic Survey for 2021-22.
Overall, the participation of retail investors in the securities markets has seen a significant increase especially in the last two years, which is evident from the increase in the number of demat accounts.
Market experts said that in 2019-20, on an average, 4 lakh new demat accounts were opened every month, which increased to more than 26 lakh per month in the current financial year.
The high participation can be attributed to the bullishness in the stock markets. The benchmark stock market indices – Sensex and Nifty – rose 17.7 per cent and 18.1 per cent respectively during April-December 2021.
Further, the net asset under management (AUM) of the mutual fund industry grew by 24.4 per cent to Rs 37.3 lakh crore at the end of November 2021, from Rs 30 lakh crore at the end of November 2020, the survey showed.
Further, net resource mobilization by mutual funds stood at Rs 2.54 lakh crore during April-November 2021, as against Rs 2.73 lakh crore during the same period last year.
During April-November 2021, foreign portfolio investors (FPIs) made a net investment of Rs 24,124 crore in Indian securities, a decline of 82.8 per cent over the same period last year.
As of November 2021, the cumulative net investment by FPIs grew by 9.2 per cent to USD 288.4 billion from USD 264 billion at the end of November 2020.
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