Sebi chief urges small investors to put money in stocks

Sebi chairman U K Sinha today advised small investors to have faith in stock market and invest at least some portion of their savings into equities for better returns in future.
He, however, advised such investors to refrain from investing directly and urged them to use indirect tools such as mutual fund or pension schemes.
Speaking at a financial literacy awareness campaign organised here, Sinha stressed that stock market will yield good returns in long run and it will prove to be an effective tool for retirement planning or any other financial planning for those having very little income.
"People like vegetable vendors or anyone having very less income don't need to detach themselves from stock market. Those who want to plan for their old age, should indeed invest some portion of their savings into stock market. But, don't invest directly, as it requires skill and expertise," said Sinha.

"Looking at the pace at which our economy is growing, share market is definitely a good option for small investors. But, instead of directly investing in stock, you should go through mutual fund or pension schemes. Don't do it yourself," he added.
The programme was organised here by Indian School of Microfinance for Women, Ahmedabad, where over 200 women participated from middle and lower income group.
Sinha also said that that expert advise is necessary to get good returns from stock market.
"Trading in stocks is not your forte. Don't try to trade without any knowledge of it. You should always take advise of experts. Even when you invest in a mutual fund, keep a track about shares in which they are investing," he added.