SEBI’s ‘Jagrook’ call: Don’t follow tips, understand before you invest

SEBI's Project Jagrook, launched in Chandigarh, urges investors to refrain from following anonymous tips, finfluencers, or exaggerated return claims. Chairman Tuhin Kanta Pandey advises investors to comprehend their investments, begin early for compounding benefits, diversify their portfolios, and not mistake fixed returns for guaranteed risk-free returns.

Pandey emphasizes that investors should consider their objectives rather than solely focusing on highest returns. With mutual fund assets rising from ₹12 lakh crore in 2015-16 to around ₹87 lakh crore today, Pandey cautions against investing merely because someone else does. A survey indicates that only 36% of investors possess high or moderate knowledge of securities markets, while only 9.5% actually participate.

The survey also reveals a notable urban-rural divide, with only 15% of urban participants compared to 6% in rural India engaging in securities markets. Pandey underscores the need for awareness in Hindi and regional languages, as well as through social media, mobile apps, and digital advertising. SEBI's initiatives, including grievance redressal mechanisms, are also underutilized, with only 6% of respondents aware of them.

Pandey stresses that the project's success should be measured by the number of informed investors, not just views.