Investors’ preference shifts from FDs, real estate to equities, post-Covid: Zerodha’s Nithin Kamath

Investors’ preference shifts from FDs, real estate to equities, post-Covid: Zerodha’s Nithin Kamath

Zerodha founder and CEO Nithin Kamath highlights a marked shift in investor preference since the Covid-19 pandemic, with money moving from fixed deposits and real estate to equities. He also points to a sharp increase in the number of unique and new investors during this period. Interestingly, Kamath said mutual funds have emerged as the biggest beneficiaries of this transition, even though direct equity participation has not increased as significantly relative to mutual fund inflows – a trend he finds surprising.

“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 now over 11 crore unique investors. The other big development is the increase in the number of new investors. Mutual funds have become the preferred avenue for new investors entering the markets, as you can see in the chart. Surprisingly, direct equity participation has not changed much from mutual funds,” Kamath’s tweet said.“It is still early days, but there are noticeable shifts from FDs, real estate, etc. Considering the unstable and disconnected world we are moving into and the huge investments required in the future, this “deepening” of the markets is a good thing,” said the founder.

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