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HOW INVESTOR BEHAVIOUR HAS CHANGED IN 2020

The markets this year have been more volatile than ever before; however, those who invested correctly and patiently weathered the financial storms, managed to come out on top. Investor behaviour has always changed as per the situation and environment of the day, and 2020 has been no different. Investing one’s money in stocks and shares […]

The markets this year have been more volatile than ever before; however, those who invested correctly and patiently weathered the financial storms, managed to come out on top. Investor behaviour has always changed as per the situation and environment of the day, and 2020 has been no different.

Investing one’s money in stocks and shares and other similar mediums, entails the sacrifice of money in hand, for the sake of an enlarged and secure future income. Investors must have patience to reap the rewards over time and the ability to stomach the risk. There are a large number of investment avenues available in the market, usually chosen by investors based on a host of factors, including their needs, their appetite for taking risks and the kind of returns they would like. The decision to invest is also influenced by individual personalities and situations including where they live, their age, their race and gender, the level of education they have achieved, their social and economic backgrounds, among others. Doing the correct research and making the right investment decisions, can therefore be quite challenging. Trusted sources like the diversified financial services firm Share India make the process of picking the right investments very easy.

Share India has been working in the financial market sector since 1993, showing consistent growth. It is now established as a leading broking house in India that provides the best value for money through personalized services. With a strong nationwide presence and a substantial and diversified client base, Share India is a financial firm that serves all kinds of investment needs. The firm deals in Mutual Funds, Brokerage, Insurance, Merchant Banking, Trading and Non-Banking Financial Companies. Their NBFC offers various financial services including loans against securities, loans against commodities, loans against properties, business loans, SME loans, personal loans and IPO/NCD financing. They are known for their transparent, clear, honest and customer-centric approach.

From the recent trends that Share India has recorded, here are the ways in which investor behaviour has changed in the year of the pandemic, 2020:

1. PEOPLE CONTINUED TO INVEST WITH BROKERAGE SERVICES:

For many individual investors, trading is a fun and exciting activity. Bored under lockdown, investors began to increase their trading activity. Many first-time and seasoned investors relied on the expert guidance provided by Share India to build their investor profile, especially in troubled times which made investing a risky activity.

2. INVESTING IN LIFE AND HEALTH INSURANCE BECAME A PRIORITY:

This will not come as a surprise to anyone. Covid-19 made everyone pay extra attention to their health. Preserving adequate money for one’s health needs became extremely important. The same is the case for the sudden rise in life insurance investments, by the breadwinners of the family.

3. PEOPLE BEGAN TO AVOID SMALL CAP AND PENNY STOCKS:

Small-cap and penny stocks are at the bottom of the barrel, and are often associated with ulterior motives and shady dealings. The pandemic has made even long-term and high-risk investors risk-averse. Most investors are choosing more secure large-cap stocks across sectors, as these promise higher dividend yields.

4. INVESTING IN GOLD & REAL ESTATE BECAME IMPORTANT:

Following the logic of the previous point, investments in land and gold demat accounts have surged in popularity. As interest rates and currency valuations dip, investors are deploying their investable funds towards gold and land as more secure options with higher rates of guaranteed returns.

5. EVERYONE BEGAN INVESTING IN TECHNOLOGY:

As the world turned virtual, investing in technology in all its variants became a sound policy for investors to follow. There has been an increase of investments in companies that focus on consumer streaming activities, video usage and gaming, as well as technology in healthcare such as surgical robotics, cloud-based business management providers in life sciences and e-commerce platforms.

Taking inspiration from these five latest trends in investor behaviour, one can successfully begin investing or enhance their existing investor portfolio. For correct guidance, it is recommended to turn to a seasoned financial services firm like Share India, known for sticking to their core values over the years while always ensuring that the ‘Customer is King’.

The writer is a lawyer who pens lifestyle articles on her successful blog www.nooranandchawla.com. She can be found on Instagram @nooranandchawla.

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