Impact of Recession on Equity Market Nandu Naik Roll No :- 61

1. Impact of Recession on Equity Market Nandu Naik Roll No :- 61 MFM – IInd Year

2. Whether to Invest in Equity Market?

3. We do not invest in Equity … More than 50% respondents still shun the equity investments - • As they prefer stable returns • Feel Stock market is akin to gambling • Periodical scams in the market further strengthens their belief

4. We do not invest in Equity … • Most of these respondents fully utilise their Section 80 (c) limit under IT Act • Of late, a few people have started investing in ELSS • They invest about 20-30% of their total investible surplus in ELSS • However, during Recession this avenue was avoided by most of them

5. We do invest in Equity … • 02 distinct groups of investors in Equity : • First Group is matured, well informed, but sadly forms a minority • They invest primarily for “Wealth creation” • Emphasis on Long term rather than short term • Contrary to general, invested more during recession period and benefitted the most with rebound

6. But, we suffered the most during recession … • Remaining majority attracted towards equity during the dream run of Equity Markets • It relies more on tips from brokers/friends • Greed is the driving factor rather than investing for “Wealth Creation” • Major component is of Younger age-group

7. But, we suffered the most during recession … • Becoming Quick Rich is their motto without commensurate efforts • Suffered the most during downturn • Failed to capitalise on investing at the bottom of the market. • Typically this class invests most during boom time and mostly the last to enter

8. Summary • Safety of investments is still the most important consideration in investors’ minds • Equity investment needs to be used for “Wealth Creation” rather than trading. • Minimum knowledge of equity markets is essential before entering into it

9. THANK YOU