Based on a SEBI-NCAER survey which found 80 per cent of equity investor households to be first generation investors and majority of equity-owning households having an inadequate diversification of portfolio – only about 5 per cent invested in more than 5 companies, the National Stock Exchange (NSE) concluded that the households lacked “experience of stock market operations”. About 84 per cent of the households invested in equity shares through the primary market – in the all-enveloping euphoria investors probably flocked to new issues to make quick money rather than making informed long term investments. These observations show.
