Skip to main content

Equity investments grow at 6.39% in FY19 despite volatile markets: Karvy report

https://www.businesstoday.in/markets/stocks/karvy-india-wealth-report-2019-equity-investments-grow-at-6-percent-in-fy19-despite-volatility/story/385179.html


The recent move to reduce corporate tax will give a generous fillip to our ailing economy and have a positive effect on the stock market, said Abhijit Bhave, CEO, Karvy Private Wealth

Direct equity investments continue to be the favourite of investors, growing 6.39 per cent in 2018/19, in spite of stock markets remaining lacklustre and volatile in the last one year. At Rs 52.10 lakh crore, investments in direct equity comprise one-fifth financial assets which saw investments by individuals, according to Karvy India Wealth Report 2019.
"This shows the belief of investors in the Indian equity markets, notwithstanding the volatility it has been through. We believe India's drive towards a $5 trillion economy will have a cascading positive effect on individual wealth," Abhijit Bhave, CEO, Karvy Private Wealth, said at the release of the company's India Wealth Report 2019. "The recent landmark move by the finance minister to reduce corporate tax will give a generous fillip to our ailing economy and have a positive effect on the stock market," he added.
Bank deposits, the second biggest in volume, saw growth of 8.85 per cent to Rs 45.82 lakh crore. The popularity of mutual funds has also picked up. This is evident from higher systematic investment plan (SIP) inflows and exponential increase in assets under management. Data shows a net inflow of Rs 92,693 crore in MFs through SIPs, an 38 per cent increase over FY18. Total individual wealth in MFs in India in 2018/19 stood at Rs 13.77 lakh crore, an increase of 18 percent over the previous year. Alongside, individual wealth in the country grew 9.62 per cent to Rs 430 lakh crore, continuing the acceleration over the last few years. A majority of this growth was achieved by 10.96 per cent rise in wealth creation by financial assets as compared to physical assets, which grew 7.59 per cent, the report said.


Labels:
Location: Mumbai, Maharashtra, India

Comments

Post a Comment

Popular posts from this blog

ADVICE FOR THE WISE – JULY 2020

  FROM THE CEO’s DESK Dear Investors, “More money has been lost trying to anticipate and protect from corrections than actually in them.” Peter Lynch. The BSE Sensex had the best quarter since June 2009 and had risen more than 35 percent from lows in March, despite Covid-19 lockdown having seriously hampered economic activity. Backed by better-than - expected economic data in recent months, along with a proactive government stance and central bank policy intervention coupled with the resurgence of FPI flows into the domestic equity market, indicates towards a "V-shaped" recovery. Corrections in the equity market offer incentives for buying quality stocks at lower valuations. Instead of worrying, we expect this downturn and the year 2020 from an investment opportunity perspective as the risk-reward ratio in the current scenario is in favour of equity investments. In regards to the domestic market, while we expect second half of FY21 to see a turnaround in production, diffic...
Post a Comment
Read more

The World This Week : 29th May 2020 – 5th June 2020

Indian Equity Summary-   ·  The Global and the domestic equity market witnessed a broad based rally on the backdrop of gradual reopening of the global economy and Ø  unprecedented stimulus package implemented worldwide by the central banks and government. The domestic equity market, in line with the global markets closed in green for the second consecutive week with Nifty 50 and Sensex up by 5.86% and 5.75% respectively.   ·  Majority of the sectoral indices closed in green on a W-o-W basis with the top performing sectoral indices being BSE Realty, BSE Consumer,Durable, BSE Metals that rose by 11.12%, 10.03% and 9.27% respectively.   ·  Going forward, global factors like development on the US -China relationship front , Covid-19 situations as globally economies have started, opening up and as the remaining results of the earnings seasons unfold will continue to dictate the trend of the domestic equity market. We expect the trading range for Nif...
Post a Comment
Read more

Private wealth soars by 10% in FY19

The individual wealth in India has swelled by 10% in the last fiscal backed by strong growth in financial assets. The individual wealth in India has swelled by 10% in the last fiscal backed by strong growth in financial assets, a report said on Wednesday. However, compared to financial assets which grew by 10.96%, physical assets growth was at a slower pace of 7.59% and individual investors are making more investments in financial assets, Karvy Private Wealth, the wealth management arm of financial-services conglomerate Karvy Group said. Direct Equity, mutual funds, pension funds, alternative investments and international assets saw the most favorable return rate. “Direct Equity continues to hold the fort in terms of investment preference in India. This shows the belief of investors in the Indian equity markets notwithstanding the volatility it has been through,” Abhijit Bhave, Chief Executive Officer, Karvy Private Wealth, said in a statement.  Further, Prime Minister ...
Post a Comment
Read more