Retail investors in driver's seat; dwarf FII flow into mkts in 2 yrs: UBS

A key trigger for the increased retail participation in equities has been the lockdown triggered by Covid-19 that saw investors channelizing their savings to capital markets in search of better return

Foreign investor flows – considered to be the movers and shakers of equity markets – have taken a backseat over the past couple of years with retail investors now being in the driver’s seat, suggests a recent report from foreign brokerage firm UBS. The report is based on a survey done in November 2020 that was focused on urban consumers with an average income of Rs 95,000 per month.

“Overall, when we combine household equity savings through mutual funds and direct share purchase, we see that households are a material force to be reckoned with: overall 25 per cent higher