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

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.