The Indian markets have changed dramatically in the post-pandemic period. The first big change is, of course, the significant increase in new investors. There are over 11 crore unique investors now.

The other big development is the increase in first-time investors. Mutual funds have become the go-to avenue for new investors entering the markets, as you can see in the chart. Surprisingly, direct equity participation hasn’t changed much relative to mutual funds.

It’s early days, but there are noticeable shifts away from FDs, real estate, etc.

Considering the unstable and closed-off world we are heading into and the massive investments needed in the future, this “deepening” of the markets is a good thing.

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