Behavioural biases that damage your investments!
In matters of investment, the sooner you acknowledge your mistakes, the sooner you'll find help in getting out of the soup. To break free from biases, the first step should be to identify those biases, says, Balwant Jain, Tax and Investment Expert.
With more than half a billion internet subscribers, India is among the largest markets for digital consumers. Technology is set to change every sector in the Indian economy. This digital ecosystem has given birth to several new-age internet companies that see this as an opportunity to ride the growth wave.
Internet-based consumer firms have become popular amid the Covid-19 pandemic as more consumers adopt digital technologies. The success of these new-age companies has now set its eyes on the capital markets to further expand its reach. IPOs of these new-age tech companies will not only add to the market capitalisation in the country but also attract more funds towards India. Domestic and global investors are actively participating in the growth story to support India’s fast-growing digital economy.
Zomato is one such example. A stock offering by the food delivery start-up drew bids worth $46.3 billion as it was more than 38 times oversubscribed on the last day of subscription. Other tech-enabled companies such as Nykaa, PolicyBazaar, Paytm, Delhivery, Lenskart, and Mobikwik among others are in various stages of their IPO plans. The growth of these tech-enabled companies is a nudge to the country’s journey to achieving the idea of a Digital India.
If the flurry of these IPOs sail through and the companies can manage their business well, the businesses can create a new signature of India Inc just as the software companies scripted a new identity for the country in the 1990s. In a few years, they can also create a lot of employment and a new layer of well-heeled executives who can turn into a class of talented managerial pool.
Better still, the success of these business models can encourage new entrepreneurs with ideas to successfully tap the market. If the investors are rewarded, they would encourage more investors to back the ventures. A new ecosystem of entrepreneurs and investors would only be a small step away then.