SAMCO Securities, an investment-tech company, has launched 'Mission - Ace the Index' that aims to promote a culture of outperformance among Indian traders and investors.
The financial company encourages traders and investors to join in on ‘Mission - Ace the Index’ and make a commitment to place an emphasis on investment performance in order to reach financial objectives.
The financial technology firm thinks that the majority of traders and investors in India are unable to achieve benchmark threshold returns. This can be attributed to a number of things, including a lack of a trading system, poor performance measurement, acting irrationally out of fear or greed, depending on tips and financial influencers, using too much leverage, etc.
As a result, SAMCO hired Nielsen, a pioneer in consumer insights, data, and analytics, to conduct the first-ever study of its kind on the Indian capital markets and investment behavior. According to the study, 67% of stock market participants are unable to achieve even benchmark index returns, and 65% of investors don't even know what their actual stock market returns are.
The survey also revealed that 63% of investors don't even target or have any plans to beat indices, and 77% of investors aren't even conscious that they must constantly outperform the benchmark indices.
More than 50% of the small 23% of investors who are conscious that they must outperform the benchmark indices have no aspirations or ideas about how to do so.
The survey, which targeted about 2,000 investors and traders in the age range of 24 to 45 years, was conducted across 10 major cities, including Delhi, Mumbai, Ahmedabad, Bengaluru, Pune, Surat, Kolkata, Hyderabad, Chennai, and Jaipur.
“Creating a culture of outperformance is our goal, and now we have the Mission - Ace the Index. Individual stock market participants must run their trading accounts in a manner where they must consistently outperform the benchmark indices. Alternatively, they should probably stop active trading, as they are likely to have much better financial outcome by simply investing in an index fund or outsource to a professional fund manager,” said Jimeet Modi, Founder and CEO, SAMCO.
SAMCO has launched next-gen Capital Resource Planning (CRP) platform on web and app, which would not only help investors to trade and invest but also create their own person index.
Basically, it shall track their real time investment return and also benchmark their performance against leading broader market indices across multiple time frames.
For Q4 CY 2022, 32% of SAMCO investors who are already using the next-generation Capital Resource Planning (CRP) platform were able to outperform the benchmark indices, while the Nifty returned 7.75% during the same time frame.
“Performance measurement, reporting and benchmarking are done fairly well in mutual funds. Securities and Exchange Board of India (SEBI) has even recommended the same for portfolio management services (PMS’s) from April 1. However, performance measurement is fairly poor amongst individual retail investors, even though they are their own money managers. To solve this, we are thrilled to launch our next-gen Capital Resource Planning (CRP) platform on web and app, to empower stock participants to achieve their best financial performance,” Jimeet added.