67% investors fail to beat the benchmark index reveals survey
SAMCO launches ‘Mission – Ace the Index’ that aims to build a culture of outperformance among Indian investors and traders.
Mumbai, 16 March, 2023: 67% stock market participants fail to beat the benchmark market index reveals the ground-breaking survey on Indian capital markets and investor behaviour. In an alarming trend, most Indian Investors and traders are unable to generate even benchmark threshold returns. This can be attributed to a variety to factors like lack of a trading system, fault performance measurement, acting driven by emotions in times of greed and fear, relying on tips and fin influencers, excessive leverage, etc. In order to overcome above mentioned challenges, SAMCO, one of India’s leading Investment-Tech company urges investors and traders to join the nationwide ‘Mission – Ace the Index’ that aims to build culture of outperformance among Indians.
SAMCO commissioned one-of-its-kind Indian capital markets and investor behaviour survey to Nielsen, the global leader in consumer insights, data and analytics firm. The survey has been done across 10 major cities which include Delhi, Mumbai, Ahmedabad, Bengaluru, Pune, Surat, Kolkata, Hyderabad, Chennai and Jaipur, focusing on approximately 2,000 investors and traders in the age-group 24 – 45 years, the study reveals some interesting findings:
67% of stock market participants are unable to generate even the benchmark index returns
65% of investors are not even aware of their exact stock market returns
77% of investors are not even aware that they consistently need to beat the benchmark indices
o Among the limited 23% investors who are aware that they need to beat the benchmark indices; more than 50% have no aspiration or idea about on how to outperform the benchmark indices.
63% investors don’t even target or have any plans to beat indices.
SAMCO invites stock market participants to join ‘Mission – Ace the Index’, and take the pledge to prioritize investment performance. SAMCO urges investors to ace i.e. outperform the relevant benchmark indices by researching and analysing investment opportunities, manage portfolio actively, and adapt strategies according to evolving market conditions.
And, if one is unable or unwilling to manage his/her portfolio actively, then one will pledge to outsource funds to a professional fund manager, who has a proven track record of delivering superior market returns, or invest in index ETF that tracks the relevant benchmarks to ensure that one is aligned with overall market performance and benefits from its growth.
Commenting on the announcement, Mr. Jimeet Modi, Founder and CEO, SAMCO said, “Creating a culture of outperformance is our goal, and now we have the Mission – Ace the Index. Individual stock market participants must run their trading accounts in a manner where they must consistently outperform the benchmark indices. Alternatively, they should probably stop active trading, as they are likely to have much better financial outcome by simply investing in an index fund or outsource to a professional fund manager”.
“Performance measurement, reporting and benchmarking are done fairly well in mutual funds. SEBI has even recommended the same for PMS’s from April 1. However, performance measurement is fairly poor amongst individual retail investors, even though they are their own money managers. To solve this, we are thrilled to launch our next-gen Capital Resource Planning (CRP) platform on Web & App, to empower stock participants to achieve their best financial performance.” Jimeet added
SAMCO next-gen Capital Resource Planning (CRP) platform on web and app will help investors not only to just trade and invest with ease, but also create their own PERSONAL INDEX that shall track their real time investment return and also benchmark their performance against leading broader market indices across multiple time frames. The investors can also benchmark their performance against leading active fund managers.
An internal date set of SAMCO investors who are already on next-gen Capital Resource Planning (CRP) platform, suggest that 32% were able to beat the benchmark indices for Q4 CY 2022, the NIFTY during the same period delivered return of 7.75%.