The second wave of Corona in the country is expected to intensify the economic crisis, but it does not seem to affect the stock market investors.
There has been a record increase in the number of new investors joining the stock market in FY 2021 (April 2020 to March 2021). According to a shared report by the National Securities Depository and Central Depository Services, 14.2 million new demat accounts were opened in FY 2020-21. The number of new demat accounts is almost three times that of the previous financial year.
Market experts say that investors are getting lower returns on investment from bank deposits to bonds and real estate due to the Corona crisis. At the same time, the stock market has given strong returns. Since March 2020, the BSE Sensex has given 68 per cent returns to investors. Due to this, investors are increasingly attracted towards the stock market. At the same time, the increase in the number of investors has also increased due to the increase in work from home and the attractiveness of the market in small towns.
There was also the benefit of simplifying the rules
Experts say that simplification of regulations related to demat by the regulator has also benefited. Simplifying the KYC process, facilitating trading through mobile apps and expanding the internet has made it possible to connect new investors to the market. This has led to a rapid increase in the opening of new demat accounts.
Also the effect of staying at home
The reason for opening of demat account on a large scale is that many people are forced to sit in homes due to Corona, which has given them time to study and manage their portfolio. Market watchers say that after the big fall in March, the market has increased since May, which has made the money of retail investors. This has encouraged them.
The share of women investors also increased
Most of the new investors joining the stock market are Millennials and women. According to share trading company Sharekhan, 77 percent more women opened demat accounts in 2021 than in 2020. At the same time, there was a 66 percent increase in the opening of trading accounts by women in 2020 compared to 2019.
