The retail risk

Stock market may test retail participation this year

The strong bull run of last year in the stock market was driven and buttressed by retail interest. In calendar 2021, the value of retail equity holdings went up by over 60 per cent, and the number of active dematerialised accounts registered an increase of over 30 million. In addition to direct equity investments, individuals also held exposure through instruments like mutual funds (which also saw record inflows), pension funds and unit-linked insurance plans. While retail interest is welcome as it enables household savings to be deployed as risk capital, it also increases risks for individual investors. This can leave