NSE India (National Stock Exchange of India Ltd) organised an investor awareness program in Guwahati on Wednesday (February 5) to empower individuals to make informed financial decisions. Many financial institutions - such as National Securities Depository Limited (NSDL), took part in displaying their financial products during the event.
Trishna Das of Business North East (BNE) spoke to Ujjwal Jain, the Chief Executive Officer of Share.Market by PhonePe, who mentioned that the biggest mistake people make is following trends.
"Look at the short-term returns. They might not guarantee the same performance. A lot of people get into following trends. You need to get rolling returns. Given that MFs are largely managed by fund managers, people need to look at their credibility and the institution's credibility if they are genuinely following what they state in their scheme documents. So, all these are very important to identify the right Mutual Fund," Ujjwal Jain said, adding that people should prefer investing in MF to build a long-term portfolio.
Regarding the derivatives segment, the share market expert mentioned that 'futures and options' are great instruments for trading on prices and volatility. But this segment became a source of quick money in terms of mindset for retail investors.
"People without knowing started rampant option buying. But most people lose money, as it's a leverage instrument. So, the increase in lot size is to make sure that investors are really serious. There's more friction for them to get into it if they are. It is in the interest of the investor only," Jain said while explaining the reason behind the increase in lot size in the derivative segment of Nifty.
"I believe people will start forcing themselves to learn more about the market. That's a journey," the CEO said during the BNE interview.
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Meanwhile, Nifty closed at 23,696.30 down by -42.95 (-0.18) per cent while Bank Nifty closed at 50,343.05 up by 0.37 per cent in a day's trade. FMCG shares also closed lower in today's session..jpg "Stock Market Expert Warns Against Trend-Driven Investing At Awareness Program")
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investing in the securities market and mutual funds involves risks. Please conduct your own research before making any investment decisions or seek guidance from financial experts.
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