67% of investors fail to beat the benchmark index reveals a survey
- SAMCO invites investors and traders to participate in ‘Mission – Ace the Index’, and take the pledge for prioritizing investment performance to achieve financial goals.
- The Investment-Tech company launches next-gen Capital Resource Planning (CRP) trading Platform on the Web & App to empower investors and traders to enhance their investment performance and beat the benchmark market returns.
MUMBAI: 67% of stock market participants fail to beat the benchmark market index revealing the ground-breaking survey on Indian capital markets and investor behavior. In an alarming trend, most Indian Investors and traders are unable to generate even benchmark threshold returns. This can be attributed to a variety of 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 companies urges investors and traders to join the nationwide ‘Mission – Ace the Index’ that aims to build a culture of outperformance among Indians.
SAMCO commissioned a one-of-its-kind Indian capital market and investor behavior survey to Nielsen, the global leader in consumer insights, data, and analytics firms. 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
- Among the limited 23% of investors who are aware that they need to beat the benchmark indices; more than 50% have no aspiration or idea about how to outperform the benchmark indices.
- 63% of 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 analyzing investment opportunities, managing portfolios actively, and adapting 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 an index ETF that tracks the relevant benchmarks to ensure that one is aligned with overall market performance and benefits from its growth.
Participants can take the pledge on https://acetheindex.com/
Commenting on the announcement, Mr. Jimeet Modi, Founder, and CEO, of 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 outcomes by simply investing in an index fund or outsourcing to a professional fund manager”.
“Performance measurement, reporting, and benchmarking are done fairly well in mutual funds. SEBI has even recommended the same for PMSs 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’s next-gen Capital Resource Planning (CRP) platform on the 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 data set of SAMCO investors who are already on the next-gen Capital Resource Planning (CRP) platform suggest that 32% were able to beat the benchmark indices for Q4 CY 2022, and the NIFTY during the same period delivered a return of 7.75%.