Rapid economic growth and changing aspirations of the new generation have increased the trend of investors in the stock market. In recent years, the movement of retail investors towards the market has been increasing. Now the Economic Review before the budget has also confirmed this. It has been told in the Economic Review that retail investors have started holding a big position in the domestic stock market.
The full budget of 2024-25 is coming today
On Monday, the first day of the new session of Parliament, Finance Minister Nirmala Sitharaman presented the Economic Review 2023-24 in the Lok Sabha. After that, today she is going to present the full budget for the financial year 2024-25 in Parliament. There has been a tradition that the government presents a review of the old financial year before presenting the budget for the new financial year. In the Economic Review, various small and big indicators of the economy are told.
Retail investors hold shares worth Rs 64 lakh crore
According to the Economic Survey, now retail investors have shares worth about Rs 64 lakh crore in the domestic stock market. This includes both shares bought directly and investments made through mutual funds. According to the survey, retail investors have shares worth about Rs 36 lakh crore, which they have bought directly. At the same time, they also have shares worth Rs 28 lakh crore bought through mutual funds.
Retail investors invest in 2500 companies
As the ownership of retail investors in the market has increased, their number has also increased. The review shows that by the end of the financial year 2023-24, the number of active retail investors in the domestic stock market had crossed 9.5 crores. They have invested money in about 25 hundred companies listed on the market. In this way, retail investors have about 10 percent direct stake in the market.
More than 35% of turnover
The Economic Survey shows that in the last few years, retail investors have increased their exposure to the market both directly and indirectly. In the financial year 2023-24, the share of retail investors in the turnover of the equity cash segment was 35.9 percent. At the same time, during the last financial year, the number of demat accounts increased from 11.45 crores a year ago to 15.14 crores.
Economic review told these reasons responsible
In the Economic Review, the Chief Economic Advisor has admitted that the increased participation of retail investors in the stock market is a good thing. This provides stability to the capital market. This investment also allows retail investors to earn higher returns on their savings. According to the review, the reasons for the increase in the participation of retail investors in the market after the pandemic include technological progress, government measures towards financial inclusion, growth of digital infrastructure, increased number of smartphones, discount brokers, etc.
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