Retail investors’ enthusiasm to bet their money in capital markets lost spark in 2022, after it witnessed an exponential growth in the previous two years. Indian households remained cautious of investing their money in equities, considered to be a risky asset, as factors like geo-political tensions, recessionary pressures, rising inflation and aggressive interest rate hikes by global central banks unsettled investor sentiment.
At a time when the number of retail investors opening demat accounts were declining, inflows through the systematic investment plan (SIP) route into equity mutual funds ballooned to a record high of ₹13,041 crore in October, showing a significant contrast.
(This story appears in the 30 December, 2022 issue of Forbes India. To visit our Archives, click here.)