THE RISE OF RETAIL INVESTING: A GLOBAL PHENOMENON

AUTHOR – ANSHUMAN SINGH, STUDENT AT BENNETT UNIVERSITY

Best Citation – ANSHUMAN SINGH, THE RISE OF RETAIL INVESTING: A GLOBAL PHENOMENON, Indian Journal of Legal Review (IJLR), 3 (2) of 2023, Pg. 201-209, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

With the expansion of retail investment over the past ten years, the landscape of the financial industry has undergone a substantial change. The purpose of this research study is to examine the mechanisms behind this change and any ramifications it may have for the financial market, individual investors, and wealth distribution. The study uses a mixed-methods approach, combining qualitative interviews with individual retail investors with quantitative data analysis of financial market movements. Advances in technology, easier access to information, and the advent of zero-commission trading platforms are some of the main factors contributing to the growth of retail investing. These elements have opened up investing options to everyone, allowing for easy decision-making and market participation by private investors.This paper emphasises the potential advantages of the boom in retail investment, including improved financial knowledge, diversified portfolios, and wealth democratisation. However, it also discusses the possible risks, such as market volatility, information asymmetry, and retail investors’ propensity for manipulation and herd behaviour. The results of this study have important ramifications for financial institutions, governments, and individual investors. It emphasises the need of investor safety and financial literacy while simultaneously acknowledging the contribution of small-scale investors to the development of the financial industry. This study contributes to the continuing discussion concerning the development of the financial system and its effects on society by investigating the emergence of retail investment