Zerodha founder & CEO Nithin Kamath highlights a clear shift in investor preference since the Covid-19 pandemic, with money moving away from fixed deposits and real estate towards equities.
He also points to a sharp rise in unique and first-time investors during this period. Interestingly, Kamath said that mutual funds have emerged as the biggest beneficiaries of this transition, even as direct equity participation has not increased as significantly relative to mutual fund inflows — a trend he finds surprising.
“The Indian markets have changed dramatically in the post-pandemic period. The first big change is, of course, the significant increase in new investors. There are over 11 crore unique investors now. The other big development is the increase in first-time investors. Mutual funds have become the go-to avenue for new investors entering the markets, as you can see in the chart. Surprisingly, direct equity participation hasn’t changed much relative to mutual funds,” Kamath’s tweet said.
“It’s early days, but there are noticeable shifts away from FDs, real estate, etc. Considering the unstable and closed-off world we are heading into and the massive investments needed in the future, this “deepening” of the markets is a good thing,” the founder said.
The Indian markets have changed dramatically in the post-pandemic period. The first big change is, of course, the significant increase in new investors. There are over 11 crore unique investors now.
ETPrime Membership
