Active TopicsActive Topics  Display List of Forum MembersMemberlist  CalendarCalendar  Search The ForumSearch  HelpHelp
  RegisterRegister  LoginLogin

Words of Wisdom
 The Equity Desk Forum :Market Strategies :Words of Wisdom
Message Icon Topic: Read how wealth can be created in stocks Post Reply Post New Topic
<< Prev Page  of 14 Next >>
Author Message
basant
Admin Group
Admin Group
Avatar

Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
Quote basant Replybullet Posted: 10/Feb/2007 at 9:21am

Though there are no official studies to that it is said that about 4crore Indians are interested in the markets while there are about 50 lac active demat accounts. There does seem  to be a discrepency into this since these two figures could not differ by that amount.The demat account figure is a certainity and as many as another 50 lac accounts are defunct.

'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
IP IP Logged
Mohan
Senior Member
Senior Member
Avatar

Joined: 09/Feb/2007
Location: United States
Online Status: Offline
Posts: 1855
Quote Mohan Replybullet Posted: 13/Feb/2007 at 3:51am
Basantji,
Let us assume that the 50 lac (0.5 crore) active demat account figure is the active number.  Now if out of a population of 100 + crores, only 0.5 crore are active in the Market today, what kind of potential is there if 
The Active demat accounts go to 2 % of Population and people interesed in the market go to 10 % of population.


Is this realistic ?  Considering the  education  and awareness created by all the media. Don't you think ?




Edited by Mohan - 13/Feb/2007 at 3:55am
Be fearful when others are greedy and be greedy when others are fearful.
IP IP Logged
kulman
Senior Member
Senior Member
Avatar

Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
Quote kulman Replybullet Posted: 13/Feb/2007 at 7:43am
 Considering the  education  and awareness created by all the media. Don't you think ?
 
---------------------------------------------------
 
I object, My Lord!
 
Awareness yes, but education by media? ???Wink
 
Life can only be understood backwards—but it must be lived forwards
IP IP Logged
basant
Admin Group
Admin Group
Avatar

Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
Quote basant Replybullet Posted: 13/Feb/2007 at 9:25am
Originally posted by Mohan

Basantji,
Let us assume that the 50 lac (0.5 crore) active demat account figure is the active number.  Now if out of a population of 100 + crores, only 0.5 crore are active in the Market today, what kind of potential is there if 
The Active demat accounts go to 2 % of Population and people interesed in the market go to 10 % of population.


Is this realistic ?  Considering the  education  and awareness created by all the media. Don't you think ?


 
 
Not a big deal really but please Kulmanji's protests in mind.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
IP IP Logged
valueman
Senior Member
Senior Member
Avatar

Joined: 29/May/2007
Location: India
Online Status: Offline
Posts: 1134
Quote valueman Replybullet Posted: 31/May/2007 at 7:09am
Originally posted by basant

The huge opportunity for Indian household money to flow into the stock market

Deposits – Banks and others

Rs 27,8985 crores

47.4%

Shares, Debentures and Mutual Funds

Rs 29,008 crores

4.9%

Investment in small savings

Rs 72, 364 crores

12.3%

Insurance

Rs 83,340 crores

14.2%

Others:

Govt. Securities (2.4%)

Currency (8.8%)

Pension Funds (8%)

Rs 124,959 crores

21.23%

 

Source: RBI 2005-06 Annual report
 
Just look at how much money Indians pay for low income generating assets. Bank deposits and Social securities. – over the next few years as financial awareness increase and we start believing that the stock market is a lot more then a gamblers den this increased flow could create havoc in the markets.

 

Our sentiments have also been bruised by the scams of 1992 and 2000. This leads many of us to believe that the end in the markets is always bad. I have read in many of the books that talk about US markets during the 1930’s about how that particular generation developed apathy towards the market. Finally we should believe that just because the market goes down it is not wrong but why and how it goes down should be investigated before drawing conclusions.

 

 In this connection SEBI and the exchanges have been doing a wonderful job and each of the steps they took were criticized whether it was dematerialization of shares or removing badla or introducing futures or the FM imposing turnover taxes!

 



The above RBI Report gives only the numbers related to Indians investing in liquid assets .But what about Indians investing in Real Estate and Gold ? Majority of Indians invest a major part of their savings and investments in these 2 sectors i.e real estate and gold . Shouldn't we factor these also ?
Any comments from Bastanji and other senior members on this ?

IP IP Logged
basant
Admin Group
Admin Group
Avatar

Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
Quote basant Replybullet Posted: 31/May/2007 at 9:32am
Those investments are not known to Govt. agencies hence they are not going into that.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
IP IP Logged
valueman
Senior Member
Senior Member
Avatar

Joined: 29/May/2007
Location: India
Online Status: Offline
Posts: 1134
Quote valueman Replybullet Posted: 31/May/2007 at 10:45am
Originally posted by basant

Those investments are not known to Govt. agencies hence they are not going into that.


True
But what is ur feeling ? I feel that many Indians are still looking at only Gold and RealEstate as  major avenues for investment apart from Banks /Postal deposits etc .
I still feel major part of funds are locked in Real Estate and Gold .

Comments please .
IP IP Logged
basant
Admin Group
Admin Group
Avatar

Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
Quote basant Replybullet Posted: 31/May/2007 at 10:58am
That money will never come out of gold - till there is one daughter in very household!!!
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
IP IP Logged
<< Prev Page  of 14 Next >>
Post Reply Post New Topic
Printable version Printable version

Forum Jump
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum



This page was generated in 0.094 seconds.
Bookmark this Page