Radhika Gupta, CEO of Edelweiss Mutual Fund, expressed concern on social media about young people relying on risky investments, particularly derivatives trading, to fund luxurious lifestyles. She highlighted a section from the Economic Survey 2023-24 that emphasizes the surge in retail investor activity, particularly among young people, and the potential dangers associated with derivatives trading, including significant losses in the event of a market correction. Gupta argued that the situation calls for action to address the risks posed to individuals and the economy.
The survey data indicates a dramatic increase in the number of retail investors in India’s capital markets, with many young people engaging in derivatives trading, particularly on expiration days. While derivatives trading offers the potential for substantial gains, the survey warns about the high risks involved, which many young investors may not fully understand.
Gupta’s post sparked a debate online, with some users echoing her concerns about the lack of jobs and the potential for financial instability. Others argued that the government should focus on regulating online gaming platforms, which they see as equally risky. Some users defended the practice, emphasizing the skills and knowledge required for successful trading and highlighting the need for financial literacy in the nation.
