Equity ownership at only 6% in India: Axis Securities

In US the figure is as high as 45%

Equity ownership constitutes under 6% of the Indian household financial wealth, excluding real estate (when compared to 45% for US), despite the Bombay Stock Exchange's Sensitive Index or Sensex having grown over 26 times in the last two decades. It has been the Foreign Institutional Investors (FIIs) who have made the most of the surge in Indian equities. 

 

Hence, the need for quality financial advice is even more important now, said Axis Securities' director Nilesh Shah. “We hope to raise the awareness among retail customers about the need to have a trusted financial advisor and increase the equity ownership as a part of household financial savings," he said.  

 

He added that though every individual -- salaried, businessman, professional or agriculturist -- has witnessed growth in personal savings, yet dominant part of these savings is locked in fixed deposits, life insurance, precious metals and real estate. 

 

“Equity is an investment avenue that is capable of beating inflation, over longer term. Still penetration in equity remains low, as many retail investors have lost money in equities. However, if we look at Sensex returns, it has given 188 times returns in the last 34 years, 26 times returns in the last 24 years, and 5 times in the last 14 years. Retail investors have lost money by trading and not investing for the long term,” explained Shah.

 

Axis Securities, the retail broking and investment advisory services subsidiary of Axis Bank, through its online trading brand AxisDirect, today launched AxisDirect Investment Kit which is a 3-in-1 investment account. It allows customers to invest online in an array of investment avenues (equities, mutual funds, IPOs, bonds, NCDs, ETFs and SIPs). 

 

Modan Saha, joint managing director - retail broking of Axis Securities added, “The basic principle of investing remains same. Do proper asset allocations, invest periodically, and show discipline and not fall into behavioral traps. However, the execution approach that worked in the past may not be solely relied on for the future. The need for a plan and a right financial doctor to help on the way is all the more relevant now.”