Author |
Message |
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
 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 Logged |
|
|
 |
|
Mohan
Senior Member
Joined: 09/Feb/2007
Location: United States
Online Status: Offline
Posts: 1855
|
 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 Logged |
|
|
kulman
Senior Member
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
|
 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? ???
|
Life can only be understood backwards—but it must be lived forwards
|
IP Logged |
|
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
 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 Logged |
|
|
valueman
Senior Member
Joined: 29/May/2007
Location: India
Online Status: Offline
Posts: 1134
|
 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 Logged |
|
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
 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 Logged |
|
|
valueman
Senior Member
Joined: 29/May/2007
Location: India
Online Status: Offline
Posts: 1134
|
 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 Logged |
|
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
 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 Logged |
|
|