Lot of innovation pending in equity market, says Navneet Munot – The Economic Times
“A lot of innovation is pending,” Munot said while speaking at the BBF-IFIE India Investor Show 2020.
“We need to leverage technology a lot more. The industry has done a very good job amid the pandemic, in terms of upping the game. We need to leverage it better,” he told viewers in the virtual event.
The number of investment accounts registered with CDSL and NSDL rose to 455 lakhs at the end of September, from 393 lakh a year ago, data from the Securities and Exchange Board of India showed.
Most of these new investors entered the stock market amid the lockdown and had their first taste of lucrative profits as the stock market rallied since its March lows, on the back of easy central bank policies across the globe, despite the Covid-19 pandemic.
Benchmark Sensex has jumped nearly 74 per cent from its lows seen in March, and hit an all-time high of 44,571.96 earlier in the day.
The entry of discount brokerages and app-based trading and investment has also helped up the game, making it easier and lucrative for Gen Z investors.
However, there is a lot of scope for things to improve from here. Munot pointed out that the number of investors were still far lower than those who have access to mobile phones, or had a PAN card, and hence, there is still huge under penetration.
Indians traditionally have preferred gold, real estate and fixed deposits to equities and mutual funds, and while the shift is happening, it is still very gradual.
On an average, benchmark indices have returned a compounded annual growth rate (CAGR) of 15 per cent over the last couple of decades, logging in more gains than traditional bank deposits.
“One needs to look at the relative returns rather than absolute returns. With interest rates where they are, a return in double digit from equities is attractive,” Munot pointed.