InvestorQ : What are the risks to watch out for with so many demat accounts?
Dawn Cherian made post

What are the risks to watch out for with so many demat accounts?

Answer
image
Mitali Bhutta answered.
2 months ago
Follow

There are a few risks to watch out for.

· Firstly, many young millennials have come into equities with the idea of making a fast buck. That may not always be the case.

· There is a TINA effect as other investment avenues are not even giving inflation level returns. However, things could change sharply if rates start to move up.

· Thirdly, most of these investors are first time impetuous investors. They think discipline can avoid losses, but the best minds will tell you that is not the case.

· Most of the recent investors may not have seen prolonged bouts of inaction and quiescence which is what really scares investors.

· Finally, don’t forget the inflation risk. As inflation rises, income levels stagnate but purchasing power declines. That makes people sceptical about all investments.

4 Views