Indian Market's Golden Era: High Returns with Low Risks

Ananth Narayan G, Sebi Whole-time Member, emphasized the consistent 15% return of Indian equities over five years, compared to zero or negative in China. He advised investors about potential risks, urging caution due to market volatility and the emergence of unregistered financial influencers.

Ananth Narayan G, a whole-time member of Sebi, highlighted the impressive 15% return on Indian equities over the past five years, contrasting it with China's stagnant or negative performance. This optimistic outlook was shared during the Investor Awareness Week at NSE.

Narayan described the Indian market as 'sone pe suhaga'—offering high returns for minimal risks. He however warned investors to remain vigilant of potential market risks. The remarkable growth recorded in FY24, with benchmark indices returning 28% amid 10% volatility, illustrates this favorable risk-return ratio.

Emphasizing the need for investor awareness, Narayan cautioned against complacency from such returns. He advised against impulsive decisions driven by 'finfluencers' and encouraged long-term investments for better yields. Sebi, recognizing potential risks, particularly in derivatives, maintains that informed understanding among investors is crucial.

(With inputs from agencies.)