Active clients' growth remains weak amid tightening of regulatory norms

Brokers say investors yet to buy the pitch of a broader market revival

Growth of active clients has remained weak, which brokers attribute to the lack of investor conviction in a broader market revival. This is in stark contrast to the expectations of a strong broader market recovery being heavily pitched by mutual fund managers in recent months.  

According to the data sourced from the NSE, the number of active clients in 2019-2020 (up to December) stood at 9.58 million, growing at 9 per cent from FY19.

Brokers say even though domestic fund managers are talking up a broader market recovery, retail investors are unwilling to deploy large investments in mid- and small-cap stocks as