The stock market has had its fair share of ups and downs this year. After an unexpected fall in March 2020, Nifty 50 has recovered around 112 per cent this year, with occasional corrections, affecting the sentiment of retail investors, who turned optimistic due to the bull run . Apart from foreign institutional investors (FIIs), retail investors lead the market with their share of investments. Though the penetration of equities in the country’s market is still at an early stage, the lure of quick profits has prompted many young investors to move to various financial markets. Experts also hailed 2020-2021 as the year of retail investors as the government stimulus package in the hands of the people during the pandemic encouraged many to start their hands in business.

Investment trends in numbers
It is true that the amount invested by retail investors is only equal to one per cent of the investment put in by FIIs in the market, the huge increase in the number of people opening demat accounts for trading and investing surprised even the investment gurus, who Known for his more than decade old experience. , The slowdown in economic activity in 2020 with several businesses shutting down due to the impact of the pandemic did not dampen investor sentiment as the numbers of Central Depository Services (India) Limited (CDSL) saw huge losses in investor accounts from 2.12 crore in March 2020. revealed growth. 4.64 crores in September 2021. The CDSL numbers revealed a massive increase in the number of retail investors to 14.2 million in 2021, with the National Securities Depository Limited (NSDL) adding around 27 lakh accounts from April to September 2021 alone.

Neophytes are entering the market
The market belongs to all as many stock brokerage firms advertise to encourage new investors in their fold. These new-age investors, mostly in their 20s, tend to underestimate market volatility because they focus on profits alone. An analysis of investor behavior highlights how a large number of them are trading in futures and options which are considered to be more risky segments than others. The most frightening aspect of this trend is that most investors are inexperienced and do not understand how the market works.

As the famous American billionaire entrepreneur Mark Cuban says, “Everyone is a genius in a bull market”. The rise in Sensex and Nifty 50 has caused many new age investors to take pride in their money making skills without realizing that real learning is possible only in a bear market.

Benefit from broker’s experience
Experience matters and it is long experience that is gradually translated into unparalleled expertise that helps you override alternative bull and bear market trends. Modern-day investors offer discount brokerage to brokerage firms regardless of the value of experience. Investing through mobile apps is another trend that has attracted investors who prefer easy access to accurate information about market trends, financial news and their impact on the value of their investments. What many people fail to realize is that more money is often lost than would have been spent on buying unreliable penny stocks, the untimely sale of some valuable shares, or investing at their high points, which are low cost or discounted. Saved on brokerage services.

While new-age brokerage firms rely on technology alone to manage risk, seasoned broking firms rely more on research and analysis of their behavior by assessing the fundamentals of various stocks and evaluating certain factors (extrinsic and innate). There is a full analytical team to supervise. affect their movement. Apart from helping you earn during an uptrend, experienced broking firms give you details about the right stocks for your portfolio and inform you when they should be bought, sold or long.

Choosing the right stocks starts with choosing the right sector. The idea is to identify areas with strong growth potential from a long-term perspective. The focus is on betting on sectors with high entry barriers that are comparatively unaffected by government policies. The scope and quality of management are important as they enable sound decision making through great execution due to consistently strong financial performance. The investment philosophy of experienced broking firms focuses on accurate valuation with increased margin for earnings through dividends and price changes, while aiming to re-rate the instruments after every change in the market.

As the popular saying goes, “You can never time the market.” True, no one knows how the market will behave tomorrow or respond to any specific information. However, experienced broking firms help in forecasting the market weather to ensure that your investment is on the right track, irrespective of how the market behaves. This they do by carefully selecting stocks of high-quality companies that should be a part of all investors’ long-term core portfolio.

Last but not least, experienced broking firms promise whole new investment options as compared to the options available to intra-day traders and long term stock market investors. Unlike today’s new-age discount brokers, who recommend investing in spare stocks for easy money without incurring potential losses, brokerage firms use their experience to offer their clients options, exchange-traded funds, sovereign bonds, and others. Let us give advice on where to park your savings. Based on the latter’s risk appetite.

experience matters
As the famous saying goes, “Experience is the spectacle of wisdom.” However, intelligence stems from knowledge which in turn is the result of education and intelligence backed by long experience. And hence investors should make best use of experienced institutions like Sharekhan. Full service brokerage firms like Sharekhan have a team of experts and with market experience act with conviction with their constant swings and springs.