Mutual funds best choice for retail investment: BSE chief
Times of India | 25 April 2025
12 Kolkata: Retail investors without technical knowhow of the equity market should consider mutual funds as the best option, said S Ramamurthy, CEO and MD of BSE, at an interaction with members of Calcutta Chamber of Commerce on Thursday. Stressing the need for investor awareness and responsibility, he said regulations alone could not protect investors if they did not take adequate precautions.
"You trade what you understand, and you understand what you trade — if you don't do that, you have a problem," Ramamurthy said, urging investors to be vigilant and informed. He criticised the tendency of investors to rely on hearsay rather than do due diligence. "You scan a vegetable before you buy it, but when you invest your life's earnings, you go by hearsay — that's not how it should be," he said.
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According to Ramamurthy, in the mutual funds space, small investors could go for index funds and broad-based funds. Elaborating on SME IPOs and stocks, he said these were not meant for retail investors, adding: "There are so many good stocks for retail investors in the main market." Ramamurthy also encouraged women and youths to begin investing early in their careers.
Highlighting the potential of India's SME sector, the BSE chief pointed out that only about 40 companies from this region were listed on the stock exchange, while the actual potential could be well over 1,000. He urged more small and medium enterprises to consider listing as a viable route to raise funds and grow their business.