Report shows 75% of new Indian investors have never faced a bear market

A recent report by DSP MF reveals that 75% of new investors in India have never faced a bear market. This trend comes as small-cap stocks have gained significant popularity, with a 296% increase in small-cap fund investors since 2020. In contrast, large-cap fund investors have only grown by 41% during the same period. The total number of investor accounts surged from 4.09 crore in March 2020 to 16.23 crore in June 2024, highlighting the shift towards small-cap investments. Experts caution that while small-cap stocks have performed well, new investors should temper their expectations. Current market valuations are under pressure compared to historical averages, suggesting a need for careful investment strategies.