New Delhi: It is still a man’s world when it comes to stock trading. According to a recent nationwide survey of investors, 85% of the estimated seven-eight million investors in India are men.
The burgeoning investor base may have attracted a new generation of investors, but it has not significantly narrowed the gender divide.
Those women who do invest in stocks, however, seem to base their decisions more on facts (than men do) and are not as cost conscious as men. And younger investors are more cost-conscious than older ones.
These are some of the highlights of India Investor Survey-2007 conducted by media buying firm Starcom Worldwide. The survey is based on an email survey that covered around 10,000 respondents (all investors).
Gender Divide: Those women who do invest in stocks seem to base their decisions more on facts (than men do) and are not as cost conscious as men
Almost half the respondents belong to the age group of 28-37 years; 42% of the respondents work in the private sector and 11% in the public sector.
And almost 49% claim to be directly trading online through a stock broking platform, and another 26% through dealers. The rest prefer to trade through sub-brokers. Around 55% of the respondents say they have been trading in stocks for not more than three years, while only a fifth of investors say have been trading for more than five years.
Women tend to be mid-term players in the stock market (which means their investment horizon is medium-term) compared to men, who remain invested in a scrip for a longer period.
Around 71% of female investors rated research and analysis as the most important factor they considered while investing against 63% of male investors.
The report also shows that younger investors are far more cost-conscious, with 52% of respondents within the age group of 18-22 years saying that brokerage (commission) is the most important factor while evaluating a broker, compared with only 25% in the 58-years-plus age group.
Turnover at the National Stock Exchange has grown 122% since 2001-02, from Rs5,13,467 crore to Rs11,40,071 crore, while trading in the F&O (futures and options) segment has grown by 2,400% from Rs1,01,925 crore to Rs25,46,986 crore for the same period.
Of the 28% of India’s gross domestic product that gets saved every year, only 1.1% (Rs7,787 crore) is invested in shares and debentures, indicating a huge potential for growth.