The growing clout of retail investors has decisively transformed India’s capital markets, providing a powerful stabilising force and reshaping long-term market behaviour, Anand Rathi, Founder and Group Chairman of the Anand Rathi Group, said on Sunday.
He was speaking at an investment conclave organised by the Maheshwari International Business Foundation.
Rathi said Indian equity markets are no longer dictated solely by large institutions or foreign capital flows. Millions of retail investors, participating through equities and mutual funds, now form a resilient domestic backbone.
Retail Participation Strengthens Market Resilience
Their steady, long-term deployment of savings has deepened liquidity, broadened ownership, and significantly strengthened the market’s ability to withstand global volatility.
This shift has fundamentally altered how markets respond to external shocks, reducing overdependence on foreign capital and reinforcing structural stability within the domestic financial system.
Volatility Is Part of the Investment Journey
Warning against short-termism, Rathi said market volatility is inevitable and should be viewed as an integral part of investing.
Corrections, he noted, are not signals to exit but opportunities to reinforce discipline. Emotional reactions driven by fear or greed often destroy value, while patience and consistency are more reliable paths to wealth creation.
The Power of Compounding and Consistent Investing
He emphasised that enduring wealth is built over time through the power of compounding.
Regular investments, even in small amounts, can deliver substantial returns if investors stay invested across cycles and avoid excessive portfolio churn.
Consistency, discipline, and long-term thinking remain the cornerstones of sustainable wealth creation in evolving capital markets, he added.
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Market insights and long-term investment perspectives curated by Ranjit Jha (CEO) and the research team at Rurash Financials.