The stock market Bull Run has made many young kids become fully-fledged Equity market investors and less focused on career
development. It’s like the white Jar advertisement related to coding for children
and turning the whole country into app creators. Many of you must be thinking that I am against all these booms and golden rally of the career of the young generation. Well, I am concerned when the bubble gets burst out and one gets into a messy situation
of career management. The risk factor of
career has gone up significantly and there is no VIX type of thing like for the
Indian stock market to measure the risk barometer for the career choices being
made and adopted. The reason for e rating the above points is to give an Idea
to all the MFD and IFAs community about the type of clients one is now going to
get past the knee jerk or slow growth of market post the massive bull run of 18
months.
Your investor is now seeking quick money, quick incentive, and most importantly quick motivation to make quick returns. The behavioral pattern of the investors needs to be taken into accounts particularly POST Covid 19. This behavioral aspect will be the key path for making a financial investment decision and advisory for all these young investors who took birth in the last 18 months. In the last 18 months, the new breed of investors has not only defied but has beaten investors having 20 to 30 years of experience. This is the behavioral threat which being a financial advisor one needs to identify
In our research, we find that the biggest segment of the new investors is either college-going students, one who is in working Dmart or Bigbazar and ones who have never experienced massive fall out. In the last 18 months, every investor has become Fund Manager and every bet of them proved to be correct.
Well in the last 18months we not only created new investors through 2.4cr new Demat account holders but also we created a significant number of stock market-related financial advisors and brokers who took up franchises and such other options to open up shop for these investors. Telegram, Whatsapp, Youtube, Facebook, and all other social media sources were used to provide FREE TIPs on stocks and investments. You will be surprised that around 90% of the so-called new baby boomer stock advisors, analyst-free Stop Loss Levels, target, and Stock Tips have created and boosted the motivation of these new investors who are also baby boomers. Due to the bull market, every Target and every Tip has worked wonders.
In youtube, we find so many free videos and lectures on stock market technical charts training and other videos that we still don’t know what percentage of authenticity those videos have in terms of providing the correct education to the investors. This check on the authenticity of educational videos itself is a big question and moreover the impact of the shortcut
Hence the real test of the nerves was never in place and based on these tips and knowledge’s investor's behavioral aspect has changed dramatically creating one of the most egoistic, highly self-motivated, and most importantly miss- calculated risk-taker which leads to massive risk for the society when the markets get into its normal shape form the current abnormal liquidity-driven bull rally. This new breed of investors who are from these odd job segments has a complete wrong miss calculated risk of investments towards the equity market. In short, the risk level of the retail investor has gone up significantly which is now driven by string behavioral change developed in the last 18 months.
The demand for having behavioral analysis and managing these clients is going to be a herculean challenge for the MFDs and Financial Advisors. This is the place where risk analysis and risk profiling matched with behavioral risk profiling needs to be linked. The quick money, quick jobs, quick returns, quick investments all are going to be nightmares in terms of behavioral reversal when the bull market comes to an end. Financial Advisors now need to become behavioral risk profilers before any investment advisory ie being executed once the bull market cools off. Otherwise, the risk of investment will come from behavioral issues and not from the asset class. The impatience and overconfident mind and behavioral will argue with a well-disciplined risk profile-based asset allocations-based model.
1 Comments:
I got some valuable points through this blog. Thank you sharing this blog.
open a stock account
Post a Comment