Key Insights for Retail Investors in India [2021]

  • What drives investor success?
  • What is the risk-return-effort sweet spot for investors?
  • Do investor preferences correlate to returns and success in the market?

#1 | Top 3 drivers of investor success

#2 | The risk-returns-effort sweet spot

#3 | Runway to financial independence

  1. The desire for early financial independence comes if historically you have been able to generate high returns.
  2. Risk aversion and the desire for convenience progressively increase as you set your deadline for retirement (typically in the last 10 years to the desired retirement).
  3. Self-belief progressively increases until 5 years to financial independence and decreases when you have less than 5 years to financial independence.
  4. Investors on their journey to financial independence value research more than advice, and value advice more than investment execution assistance. There is a strong desire for control at all stages of the journey.

So, what do these insights mean for investors like you?

  1. Start consolidating investments at least 10 years before your desired timeline for financial independence to have better control over your lifestyle
  2. Move from risk-avoidance to intelligent risk-management to get superior returns
  3. Upgrade your investment knowledge by doing-it-yourself so that you identify and focus on what works best for you

Robust Model Stock Portfolios for Data-driven, DIY Investments

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SEBI registered research analyst (INH200008644) | Founder, 57Forward Consulting

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Pankaj Singh

Pankaj Singh

SEBI registered research analyst (INH200008644) | Founder, 57Forward Consulting

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