Why retail investors lost the confidence on indian market.

1. Presented By Kantharaja. H M
Working for Thomson Reuters &
Guest faculty in Maharani College of Commerce & Business Management for
Women , Bengaluru

2. Definition of Retail Investor
Individual investors who buy and sell securities or their
personal accounts, and not for another company or
organization.
Also known as an “individual investor” or “small
investor” or DII’s
Retail investors buy in much smaller quantities than
larger institutional investors.

3. Trigger or motives the fall of retail
investors
 ‘Disposition effect’ selling the winning stocks too



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quickly and holding on to the losing stocks too long.
‘Overconfidence‘ taking credit for good decisions and
attributing bad decisions to luck
High volatility
Introduction of Periodic Call Auction for illiquid scrips
Broker apathy

4. Continue…….

5. Investment Strategy
2
17%
15%
Risk averse
Invest cautiously
29%
39%
Preserve capital
Willing to take risk

6. Proposal for boosting the
confidence level of investors
 Tax benefit for equity investors.
 Increase the confidence of equity investors.
 Create the insurance mechanism for equity
investment.
 The initiative aims to strengthen and deepen
investor awareness.
 Promote equity markets as an attractive
investment option.
 Investor has to think in rational way

7. Today's Investing Mantra
"There are always going to be times when humans act
irrational and this is time to make your money. I've
made a career of cashing in when people act irrational"
- Warren Buffett

8. Decisions
“Finding the best person or the best organization to
invest your money is one of the most important
financial decisions you’ll ever make”
-William Gross

9. References
 Business line
 Shailesh Menon, ET Bureau
 NDTV PROFIT-MARKET
 Articles.economictimes.indiatimes.com
 www.deccanherald.com › Supplements › Economy &
Business