Taking Indian Economy to Newer Altitudes: How Financial Firms can Benefit Indian Youth and Markets

2016: The year in which, powerful countries of the world are reaching new pinnacles of economy, but Indian youth is still struggling to make both ends meet. In the current scenario, most of us avoid stock trading in India. Trading stock and shares is considered a taboo in Indian society. Lack of participating is clearly responsible for decline of Indian economy, whereas US economy is progressing by 1.2% every year.

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The Plight of Stock Market, India—

Despite a massive number of over one billion, barely 1.5% of the country’s population invests in stock market as opposed to China and US, where the number as 10% and 18% respectively. Statistics quoted by Sebi in 2010 reveal, only 10% Indian cities contributed to 80% day trading volume. Moreover, where US 45% Americans are investing in equities, just 2% India’s savings contribute to equity and mutual funds.

Majority of Indians are unfamiliar with terms like penny stock, currency trading, day trading and stock quotes.

Uprising Stock Trends—

# Benefits for the Youth

With the BSE (Bombay Stock Exchange) taking a substantial leap of 31% in 2014, the youth may want to open a brokerage account for their mad money. It could easily cover short-term goals (like tuition fee, business start-ups, car loans etc.) and long-term objectives (like insurance, retirement fund, personal savings and real estate investment).

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Availability of online trading account and zero brokerage schemes allow investors to buy and sell stocks, equities, mutual funds, exchange-traded funds and bonds, without paying hefty taxes, in some cases.

Online brokers have made stock trading easier by replacing brokerage fee with flat 2-figure amounts (check out our zero brokerage plan by the name ZeBro for more information) and educational schemes.

# Benefits for Indian Market

With 70% foreign investors dominating Indian markets, there’s a requirement for strong and stable finance industry based on youth participation. In these desperate times, the country needs local funds to avoid macroeconomic gaps, stabilise its position in international stock market and achieve financial inclusion.

Indian household savings (which make up 30% of the total economy), ranking highest in the world, can be channelled to generate resources for the corporate industry. There’s a need to divert funds from unproductive investments in gold, to fruitful investments. In return, company stocks can deliver benefits to sectors lying at the bottom of the socio-economic pyramid.

Conclusion:

The erratic condition of trading in India and lack of support from local markets has resulted in foreign inflow. Therefore, it is important that Indian youth is encouraged to participate in financial drive for progress.

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If you find yourself clueless regarding your ventures and are looking for online brokers, Wealth Mantra will be happy to assist you. We provide equity, derivative, future and options (F&O), currency, commodity, mutual fund, insurance, IPO, depository and online trading services on browser (Wealth with speed) and mobile apps (Wealth on Move).