The Truth About Declining Household Savings And F&O Trading

#modinomics #futuresandoptions #stockmarket #economicimpact #sip
The main argument against Futures & Options (F&O) trading is that household savings are being diverted from productive capital formation to speculative bets in the stocks and indices option segment. Is this really what is happening in our economy? Perhaps not entirely. That's what the expert believes. Dr. Manoranjan Sharma, Chief Economist- Infomerics Ratings says the trading in the F&O segment is just one factor. Perhaps a much more important factor is the influx of money in the stock markets via the SIP route by mutual funds. On an average, SIPs mobilise Rs. 25, 000 crore every month. Hence an extrapolation over 12 months makes it more than Rs. 3 lakh crore. Last month’s SIP mobilisation was even higher at Rs. 40,000 crore. "There are also factors like higher returns in other asset classes, such as, gold and real estate and the high rate of inflation, "reasons Sharma. Murthy Nagarajan, Head-Fixed Income, at Tata Asset Management says that the F&O segment, primarily traded by the organized sector benefiting from the formalization of the economy, accounts for only 2 to 3 percent of the working-age population. "The rest of the population in the informal sector faces increased financial liabilities. Many people lost their jobs or had to take voluntary salary cuts during the COVID period, with some salaries still not restored to their original levels," says Nagarajan. Watch Business Today TV Managing Editor Siddharth Zarabi in conversation with Dr. Manoranjan Sharma, Chief Economist, Informerics Ratings and Murthy Nagarajan, Head Fixed Income, Tata Assest Management and Anand Adhikari, Managing Editor Of Business Today Magazine.
#DrManoranjanSharma #InfomericsRatings #SIPInvestments #MutualFunds #FinancialMarkets #Gold #RealEstate #Inflation #TataAssetManagement #MurthyNagarajan #EconomicAnalysis #BusinessToday #FinancialInsights #MarketTrends
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