The number of demat accounts increased by 34% in December 2022, reflecting a surge in new investors in the indian stock market
While demat accounts have risen , there isn't a clear correlation between demat accounts and mutual funds holdings
Deciding between direct equity and mutual funds is a personal choice.
Risk management favors mutual funds for beginners as they require less analysis compared to direct equity investments.
Many financial advisors suggest managed funds, like mutual funds schemes, over direct equity investments for their clients.
Mutual funds can serve as the cornerstone of investment portfolios, with stocks as supplementary components.
Stock investors need to possess a deep understanding of individual stocks, conduct in-depth research, and actively monitor the market . This demands substantial time and effort.
Many skilled stock market investors and professionals maintain personal mutual funds portfolios , which offer diversification and professional management.
SIPs in mutual funds provides a structured way to participate in the stock market and avoid the complexities and stress associated with direct stock investing.
Stock market investment should be aligned with realistic financial goals . it's important to recognize that stocks can be volatile , and wise planning is crucial.