India’s stock markets have seen significant growth in recent years with a large number of new investors entering the equity segment. Earlier this year, in January, India overtook Hong Kong to become the fourth-largest stock market globally. The equity boom attracting new investors is evident as the data indicate a large section of investors making money. In a recent tweet Nithin Kamath, chief executive officer of largest online trading platform Zerodha, said that the investors on their platform have made substantial profits in the last four years.
In a post on X, Kamath said that equity investors using Zerodha have collectively realised profits worth Rs 50,000 crore over the past four years while the unrealised profits amounted to Rs 1 lakh crore. The Zerodha investors’ total assets under management (AUM) stand at Rs 4.5 lakh crore.
Nikhil Kamath said that it is ‘unreal’ how much the markets have expanded post-Covid. These accounts have been set up in the last four years, he added.
Commenting on Kamath’s tweet, a user also asked about the losses made by investors.
“Is the realised loss more than profits?” wrote one of the users. To this, Nitin Kamathh replied that the net of realised profits and realised losses across all customers stood at Rs 50,000 crore. Zerodha has over 1.3 crore clients.
Equity investors @zerodhaonline have realized a profit of Rs 50,000 crores over the last 4+ years and are sitting on unrealized profits of Rs 1,00,000 crores on an AUM of Rs 4,50,000 crores. By the way, most of the AUM was added in the last four years. pic.twitter.com/4X981aY2jH
— Nithin Kamath (@Nithin0dha) June 11, 2024
Zerodha recorded a 1.5 percent month-on-month increase in its client base in April, reaching 7.4 million users.
Apart from stocks, investment in equity mutual funds increased strongly to a record high of Rs 34,697 crore in May. This figure is 83 percent more than in April. According to the Association of Mutual Funds in India, this is the 39th consecutive month of net investment in equity funds.
In FY24, a total of 3.7 crore Demat accounts were registered in India— reflecting over 30 lakh accounts added monthly on an average.
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