Retail participation in IPOs or new fund offerings has been low in the recent past. However, retail involvement even in the secondary market seems to have dipped. Some investors are staying away till volatility abates. Others are waiting to see if they will get their increments this year, and are all set to pump this extra money in stocks. It's almost as if investors have been given preparatory holidays before a big exam. But are they using this time to prepare? A savvy investor will utilise this breathing space to figure out the best bargains; volatility in the market generally throws up some irresistible deals. A 15-25 per cent correction, which is more likely than we think, might put an otherwise overpriced stock well within your reach. But you may not find it if you're not prepared to look.
As far as increments go, given that the worst is over, most employees expect a decent hike in salaries this year. We conducted a survey covering over 1 lakh respondents and found that an overwhelming majority expects to be compensated for last year's poor (often non-existent) bonuses. And many are planning to start investing once they get this money. How prepared are you?
