Equities went through a rough ride in 2018 as volatility dented sentiment

Most of the retail money in shares after 2015 has come through the mutual fund (MF) route

Domestic brokerages, riding high after a euphoric 2017, were hit by incessant market volatility in 2018, which impacted volumes and retail interest in direct equities. 

The country’s equities went through bouts of volatility, especially between January and March, as well as August and October. 

The crash in mid- and small-caps, in particular, hit investor confidence. Wealthy investors, who had put money into portfolio management schemes, were in for a shock as returns turned negative.

“Volumes have dipped, margins have shrunk and distribution of products has become more difficult. With the volatility likely continue, we expect a tough year for brokerages in 2019,” said