The Rise of Retail Investors and Domestic Funds in India: A New Era of Investment
The Rise of Retail Investors and Domestic Funds in India: A New Era of Investment
India’s investment landscape has witnessed a monumental shift in recent years with the rise of retail investors and domestic funds. Traditionally, Indian households relied on risk-free savings methods such as fixed deposits, Public Provident Funds (PPF), and other secure financial instruments. However, with advancements in financial literacy, technology, and regulatory reforms, more individuals are venturing into the stock market, significantly increasing participation in India’s capital markets.
The Evolving Landscape of India's Capital Market
India's capital market has undergone a remarkable transformation in recent years, reflecting the country's robust economic growth and increasing investor interest. A key indicator of this evolution is the surge in market capitalization, which has witnessed a significant uptrend.
Market Capitalization Growth:
National Stock Exchange (NSE):
The NSE has experienced a phenomenal growth in market capitalization, soaring from US$ 2 trillion in July 2017 to US$ 5 trillion by December 2023. This exponential increase highlights the growing confidence and participation of investors in the Indian capital market.