Direct exposure to equities is fraught with risks for unseasoned investors

Begin investing directly in a very small portion of your portfolio and see if you have the flair for it

Retail participation in direct equities has risen at a rapid pace this year. This is evident from the rise in the number of new demat accounts that were opened—a record 6.8 million between April and October. Non-institutional participation in the cash segment of the market, which serves as a proxy for retail participation, has also gone up between March and November, from an average of around Rs 22,500 crore to Rs 35,000 crore.

Those choosing the direct investment route, however, need to bear in mind that beating professional fund managers or even the leading benchmark indices over the long term,